Loan Calculator
Calculate your loan payments based on loan amount, interest rate, and repayment term. Compare different loan options.
Loan Calculator
How to Use the Loan Calculator
- Enter Loan Amount: Input the total amount you want to borrow
- Set Interest Rate: Enter the annual interest rate as a percentage
- Choose Loan Term: Specify the loan duration in years or months
- Add Extra Payments: Optionally include additional monthly payments to see payoff acceleration
- Review Results: View monthly payment, total interest, and payoff timeline
- Check Schedule: Examine the first year's principal and interest breakdown
Calculation Examples
Common Loan Scenarios
Extra Payment Benefits
Frequently Asked Questions
How is the monthly payment calculated?
Monthly payments are calculated using the PMT formula, which considers the loan amount, interest rate, and term length to determine a fixed payment that pays off the loan completely.
What's the benefit of making extra payments?
Extra payments go directly toward the principal balance, reducing the total interest you'll pay and shortening your loan term. Even small extra payments can save thousands in interest.
Should I choose a shorter or longer loan term?
Shorter terms mean higher monthly payments but less total interest. Longer terms have lower monthly payments but more total interest. Choose based on your budget and financial goals.
How accurate are these calculations?
Our calculator uses standard financial formulas and provides accurate estimates. However, actual loan terms may include additional fees, insurance, or taxes not included in these calculations.
Can I use this for any type of loan?
Yes! This calculator works for personal loans, auto loans, mortgages, student loans, and any fixed-rate installment loan with regular payments.
What if my loan has a variable interest rate?
This calculator is designed for fixed-rate loans. For variable rates, use the current rate as an estimate, but remember your actual payments may change over time.
Understanding Your Loan Results
Key Terms
Monthly Payment
Fixed amount you'll pay each month including principal and interest
Total Interest
Total amount you'll pay in interest over the loan's lifetime
Amortization
The process of paying down loan principal over time through regular payments
Payment Breakdown
Early Payments
Initially, most of your payment goes toward interest
Later Payments
Over time, more payment goes toward principal as balance decreases
Extra Payments
Additional payments go directly to principal, reducing total interest
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