Loan Calculator
Calculate your monthly payment, total interest, and view a complete amortization schedule for any loan.
Results
Monthly Payment
$391.32
$23,479
Total Payment
Principal
Interest
Principal
$20,000
Total Interest
$3,479
Total Payment
$23,479
Total Payments
60
Loan Summary
Interest Rate
6.5%
Loan Term
60 months
Interest Ratio
17.4%
Payoff Date
Dec 2030
Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
|---|
Understanding Loan Calculations
Monthly Payment Formula (PMT)
M = P * [r(1+r)^n] / [(1+r)^n - 1]
Where M is monthly payment, P is principal (loan amount), r is monthly interest rate (annual rate / 12), and n is total number of payments.
Total Interest Paid
Total Interest = (M * n) - P
The total interest is your total payments minus the original loan amount. A shorter term or lower rate means less total interest paid.
Amortization
Interest = Balance * r | Principal = M - Interest
Each payment is split between interest and principal. Early payments are mostly interest; later payments are mostly principal as the balance decreases.
Frequently Asked Questions
Your monthly loan payment is calculated using the PMT formula: M = P * [r(1+r)^n] / [(1+r)^n - 1], where M is the monthly payment, P is the principal (loan amount), r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments. This formula ensures equal monthly payments throughout the loan term.
Loan term refers to the length of time you have to repay the loan. You can express this in either months or years - for example, a 5-year loan equals 60 months. Shorter loan terms result in higher monthly payments but less total interest paid, while longer terms have lower monthly payments but more total interest over the life of the loan.
An amortization schedule is a complete table of periodic loan payments showing the amount of principal and interest that make up each payment until the loan is paid off. Early in the loan term, a larger portion of each payment goes toward interest, while later payments go more toward principal. This schedule helps you understand exactly how your loan will be paid down over time.
The interest rate significantly impacts your total loan cost. Even a small difference in rate can result in thousands of dollars difference over the loan term. For example, on a $20,000 loan over 5 years, the difference between 5% and 7% APR is approximately $1,100 in additional interest. Always compare rates from multiple lenders to get the best deal.
This calculator works for any fixed-rate amortizing loan including personal loans, auto loans, student loans, home improvement loans, debt consolidation loans, and other installment loans with fixed monthly payments. It uses the standard PMT formula that applies to most consumer loans with regular monthly payments.