Loan calculator
Monthly payment, total interest and a yearly amortization schedule for a fixed-rate loan, with extra payments.
- ๐บ๐ธ US federal & state rules
Monthly payment
$512.91
$25,000.00 at 8.5% for 5 years
- Total interest
- $5,774.80
- Total of payments
- $30,774.80
- Number of payments
- 60
This is an example. Enter your numbers above and press the button to see your own result.
Amortization by year
| Year 1 | principal $4,190.73, interest $1,964.23, balance $20,809.27 |
|---|---|
| Year 2 | principal $4,561.15, interest $1,593.81, balance $16,248.12 |
| Year 3 | principal $4,964.31, interest $1,190.65, balance $11,283.81 |
| Year 4 | principal $5,403.11, interest $751.85, balance $5,880.70 |
| Year 5 | principal $5,880.70, interest $274.26, balance $0.00 |
- Fixed rate, monthly payments. Origination fees, insurance and taxes are not included. The APR a lender quotes may include fees, so it can be a bit higher than the note rate.
Show the math
| Monthly rate | 8.5% รท 12 = 0.70833% |
|---|---|
| Payment | P ร i รท (1 - (1 + i)^-60) = $512.91 |
| Interest | $30,774.80 - $25,000.00 = $5,774.80 |
What to do next
How it works
Most US personal, auto and student loans are fixed-rate installment loans with the same payment every month. The calculator finds that payment from the amount, the yearly rate divided by 12 and the number of months.
The table adds up principal and interest for each year and shows the balance left at the end of it. With an extra monthly payment, it shows the faster schedule and how much interest you save.
Things to keep in mind
Lenders must show the APR, which can include fees, and the finance charge under the Truth in Lending Act. Compare offers using the APR and the total of payments.
Frequently asked questions
How is a monthly loan payment calculated?
Payment = P ร i รท (1 - (1 + i)^-n), where i is the yearly rate divided by 12 and n is the number of months. $10,000 at 7% for 5 years is $198.01 a month.
How much interest will I pay?
Multiply the payment by the number of months and subtract the loan amount. The $10,000 loan above costs about $1,880.72 in interest over 60 payments.
Why does most of my early payment go to interest?
Interest is charged on the balance, which is highest at the start. As the balance falls, more of the same payment goes to principal.
Do extra payments help?
Yes. Extra money goes straight to principal, so less interest builds up. Adding $100 a month to that $10,000 loan pays it off in 38 months instead of 60 and saves about $719 in interest.