Loan Calculator
Calculate monthly payments, total interest, and amortization schedule for any loan. Works for mortgages, car loans, personal loans, and more.
Enter loan details to calculate payments
Free Loan Calculator – Calculate Monthly Payments & Interest
Our free loan calculator helps you calculate monthly payments, total interest, and see a complete amortization schedule for any type of loan. Whether you're planning a mortgage, car loan, personal loan, or student loan, this tool gives you instant, accurate results.
Simply enter your loan amount, annual interest rate, and loan term to see exactly how much you'll pay each month and over the life of the loan.
How Loan Payments Are Calculated
M = P × [r(1+r)^n] / [(1+r)^n - 1]
- M = Monthly payment
- P = Principal (loan amount)
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments
Types of Loans This Calculator Works For
15-30 year terms, 3-8% rates typical
3-7 year terms, 4-12% rates typical
1-7 year terms, 6-36% rates typical
10-25 year terms, 4-13% rates typical
Tips to Reduce Total Interest Paid
- Make Extra Payments: Even $50/month extra can save thousands in interest.
- Choose Shorter Terms: 15-year mortgages have lower rates than 30-year.
- Improve Your Credit: Higher scores qualify for lower interest rates.
- Refinance: If rates drop, refinancing can lower your payment.
Frequently Asked Questions
How is loan interest calculated?
Loan interest is typically calculated using simple or compound interest. Most loans use amortization, where early payments go mostly toward interest, shifting toward principal over time.
What's the difference between APR and interest rate?
APR (Annual Percentage Rate) includes the interest rate plus other loan costs like fees. APR gives you a more complete picture of the loan's true cost.
Should I get a 15 or 30-year mortgage?
15-year mortgages have higher monthly payments but much lower total interest. 30-year loans offer lower payments but cost more overall. Choose based on your monthly budget.
How much house can I afford?
A general rule: your mortgage payment should be no more than 28% of gross monthly income. Use this calculator to find a loan amount with a payment in your budget.
What is amortization?
Amortization is the process of paying off debt through regular payments. Each payment covers interest first, with the remainder reducing the principal balance.