Free Online Loan Calculator
Instantly calculate your monthly payment, total interest, and full amortization schedule. Adjust the loan amount, interest rate, and term below to explore different scenarios and see how extra payments can save you money.
Amortization Schedule
How to Use This Loan Calculator
Whether you are considering a mortgage, an auto loan, or a personal loan, understanding your monthly payment and total cost of borrowing is essential. Our free loan calculator helps you make informed financial decisions by providing instant, accurate results for any fixed-rate loan scenario.
What This Calculator Does
This loan calculator uses the standard amortization formula to determine your fixed monthly payment based on the loan amount (principal), annual interest rate, and loan term. Beyond the basic payment figure, it generates a complete amortization schedule that shows how each payment is split between principal and interest over the entire life of the loan. You can also explore how making extra monthly payments reduces your total interest and shortens your repayment timeline.
How Loan Amortization Works
Amortization is the process of spreading out a loan into a series of fixed payments over time. With each monthly payment, a portion goes toward the interest charged on the outstanding balance, and the remainder reduces the principal. In the early months of a loan, the interest portion is at its highest because the outstanding balance is largest. As you continue making payments and the principal shrinks, the interest portion decreases and more of each payment is applied to the principal. This is why the amortization schedule is such a powerful tool: it shows you exactly how this shift happens month by month.
Our calculator displays the full amortization table by default in monthly view, and you can toggle to a yearly summary for a higher-level overview. You can also export the complete schedule to a CSV file for your own records or further analysis in a spreadsheet.
Understanding Your Monthly Payment Breakdown
Your monthly payment is determined by three key inputs: the loan amount, the interest rate, and the term length. A larger loan or higher interest rate will increase your monthly payment, while a longer term reduces the monthly payment but increases the total interest paid over the life of the loan. The calculator shows you the total payment (principal plus all interest) and the total interest separately, so you can see the true cost of borrowing at a glance. The interactive pie chart provides a visual breakdown of how much of your total payment goes to principal versus interest.
How Extra Payments Save You Money
One of the most powerful features of this calculator is the ability to model extra monthly payments. When you make an additional payment beyond the required amount, that extra money goes directly toward reducing your principal balance. Because interest is calculated on the remaining balance, every dollar of extra principal payment reduces the total interest you will pay over the life of the loan. Even a modest extra payment of $100 per month on a $200,000 mortgage can save you tens of thousands of dollars in interest and shave years off your repayment schedule. Try adjusting the extra payment slider to see the impact for your specific loan.
Tips for Comparing Loan Offers
When evaluating loan offers from different lenders, focus on more than just the monthly payment. A lower monthly payment on a longer-term loan may actually cost you significantly more in total interest. Use this calculator to model each offer side by side: enter the loan amount, rate, and term for each scenario and compare the total interest and total payment figures. Pay special attention to the effective cost of the loan over the time period you expect to hold it, not just the full term. If you plan to sell a home or refinance within five years, the amortization schedule will show you how much equity you will have built by that point.
For specialized calculations, explore our boat loan calculator, RV loan calculator, and other niche tools designed for specific loan types.
Frequently Asked Questions
How is my monthly loan payment calculated?
Your monthly payment is calculated using the standard amortization formula: M = P x r x (1+r)^n / ((1+r)^n - 1), where P is the loan principal, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. This formula ensures that each monthly payment covers both interest and a portion of the principal, resulting in the loan being fully paid off by the end of the term.
What is an amortization schedule?
An amortization schedule is a detailed table showing every monthly payment over the life of your loan. Each row breaks down how much of that payment goes toward interest versus principal, and shows the remaining balance after each payment. Early in the loan, a larger portion of each payment goes to interest. Over time, more of each payment is applied to the principal as the balance decreases.
How do extra payments affect my loan?
Extra payments go directly toward reducing your loan principal. This means you pay less interest over the life of the loan and can pay it off sooner. Even small additional monthly payments can save you thousands of dollars in interest and cut years off your loan term. Use the extra payment field in our calculator to see exactly how much you can save.
What is the difference between fixed and variable rate?
A fixed-rate loan has an interest rate that stays the same for the entire loan term, giving you predictable monthly payments. A variable (or adjustable) rate can change over time based on market conditions, meaning your payments may increase or decrease. This calculator supports fixed-rate loan calculations, which are the most common type for mortgages, auto loans, and personal loans.
Is this calculator free to use?
Yes, this loan calculator is completely free to use with no sign-up required. You can calculate as many loan scenarios as you need, view the full amortization schedule, and export results to CSV at no cost. There are no hidden fees, subscriptions, or account requirements.