Loan Payment Calculator 2025
Calculate your monthly loan payment, total interest paid, and total cost for any loan. Enter the loan amount, annual interest rate, and loan term to see an instant breakdown plus a detailed 12-month amortization schedule showing how each payment is split between principal and interest.
Monthly Payment
$489.15
Total Interest Paid
$4349.22
Total Cost
$29349.22
First 12 Months — Amortization Schedule
| # | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $353.74 | $135.42 | $24646.26 |
| 2 | $355.65 | $133.50 | $24290.61 |
| 3 | $357.58 | $131.57 | $23933.03 |
| 4 | $359.52 | $129.64 | $23573.51 |
| 5 | $361.46 | $127.69 | $23212.05 |
| 6 | $363.42 | $125.73 | $22848.63 |
| 7 | $365.39 | $123.76 | $22483.24 |
| 8 | $367.37 | $121.78 | $22115.87 |
| 9 | $369.36 | $119.79 | $21746.51 |
| 10 | $371.36 | $117.79 | $21375.15 |
| 11 | $373.37 | $115.78 | $21001.78 |
| 12 | $375.39 | $113.76 | $20626.38 |
How Loan Payments Work
Loan Amount
The principal is the amount you borrow. Whether it's a mortgage, car loan, or personal loan, the loan amount determines the base cost of your borrowing. Larger loan amounts result in higher monthly payments and more total interest over the life of the loan.
Interest Rate & Term
The annual interest rate and loan term work together to determine your monthly payment. A lower rate or longer term reduces your monthly payment, but a longer term increases the total interest you'll pay over the full loan life. This calculator uses the standard amortization formula to give you accurate numbers.
Amortization
Amortization is the process of spreading out a loan into a series of fixed payments. Early payments go mostly toward interest, while later payments go mostly toward the principal. The amortization schedule shows exactly how each payment is allocated over the first 12 months of your loan.
Common Loan Types
This calculator works for any fixed-rate amortizing loan. Here are some common loan types it covers:
30-year & 15-year fixed
36 to 72-month terms
1 to 7-year terms
10 to 25-year terms
This calculator assumes fixed interest rates and equal monthly payments. Adjustable-rate mortgages (ARMs) and interest-only loans are not supported.
The Loan Payment Formula
This calculator uses the standard amortization formula:
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]M = Monthly payment
P = Principal (loan amount)
r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
n = Total number of monthly payments (term in years × 12)
Loan Payment Calculator FAQ
How is my monthly loan payment calculated?
Your monthly payment is calculated using the standard amortization formula: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]. Here, P is your loan amount, r is your monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. This formula ensures each payment is equal over the full loan term.
What is an amortization schedule?
An amortization schedule breaks down each loan payment into the portion that goes toward interest and the portion that goes toward the principal (the original amount borrowed). Early in the loan, a larger share goes to interest. Over time, more of each payment goes to principal, accelerating the payoff.
How can I reduce the total interest on my loan?
Three main ways: (1) Make extra principal payments whenever possible — even one extra payment per year can save thousands in interest. (2) Choose a shorter loan term — a 15-year mortgage has higher monthly payments but far less total interest than a 30-year mortgage. (3) Shop for a lower interest rate — a difference of even 0.5% can save significantly over the life of the loan.
Does this calculator work for mortgages?
Yes. This calculator works for any fixed-rate, fully amortizing loan including mortgages, auto loans, personal loans, and student loans. Note that it does not include property taxes, homeowners insurance, PMI, or HOA fees — those are additional costs that affect your total monthly housing payment but are not part of the loan itself.
What is the difference between fixed-rate and adjustable-rate loans?
Fixed-rate loans keep the same interest rate for the entire term, so your monthly payment never changes. Adjustable-rate loans (ARMs) have a rate that can change periodically based on market conditions. This calculator only supports fixed-rate loans, which are the most common choice for borrowers who want predictable payments.
Can I make extra payments to pay off my loan faster?
Yes. Making extra principal payments reduces the loan balance faster, which means less interest accrues over time. Even small additional payments can significantly shorten your loan term and reduce total interest. Use this calculator to see your baseline payment, then consider adding extra principal to accelerate payoff.
Is this loan payment calculator free?
Yes, completely free. No signup, no email, no limits. Enter any loan amount, interest rate, and term to get instant results with a full amortization breakdown for the first 12 months.
How often should I use a loan payment calculator?
Use it before taking out any new loan to understand your payment obligations. Also use it when refinancing to compare your current loan with a new one. A quick calculation can help you decide between different loan offers and terms, potentially saving you thousands of dollars.