| Payment | Payment Amount | Principal | Interest | Remaining Balance |
|---|
Use our free loan calculator to estimate your loan payment, total interest, total loan cost, and amortization schedule. Enter the amount you want to borrow, your interest rate, and loan term to see how much you may pay over time.
This calculator can help you understand how different loan amounts, interest rates, repayment terms, and payment frequencies can affect your overall borrowing cost.
A loan calculator estimates your periodic payment based on the principal amount, interest rate, repayment term, and payment frequency. For a standard fixed-rate loan, each payment generally includes both principal and interest.
At the beginning of a loan, a larger portion of each payment may go toward interest. As the balance decreases, more of the payment can go toward reducing the principal.
For a standard fixed-rate installment loan, the payment can be calculated using the principal, periodic interest rate, and total number of payments.
The basic loan payment formula is:
Where:
For example, if a loan has an annual interest rate, the periodic rate for monthly payments is generally the annual rate divided by 12. The total number of payments is the number of years multiplied by 12.
Suppose you borrow $25,000 at an annual interest rate of 7.5% for 5 years with monthly payments.
| Loan Details | Example |
|---|---|
| Loan Amount | $25,000 |
| Interest Rate | 7.5% |
| Loan Term | 5 years |
| Payment Frequency | Monthly |
Enter these numbers into the calculator above to estimate the periodic payment, total interest, total cost, and amortization schedule.
Several factors can affect the amount you pay on a loan.
A larger principal generally results in a larger payment when the interest rate, loan term, and payment frequency remain the same.
The interest rate determines how much interest accrues on the outstanding balance. A higher interest rate generally increases the total interest paid over the life of the loan.
A longer repayment term can reduce the required periodic payment, but it can also result in more interest being paid over the entire loan.
Changing the payment frequency changes how often payments are made. This calculator supports monthly, biweekly, and weekly payment schedules.
An amortization schedule shows how each payment is divided between principal and interest. It also shows the remaining loan balance after each payment.
The amortization table in this calculator allows you to see how your loan balance changes throughout the repayment period.
Understanding amortization can make it easier to see how much of your payments goes toward interest and how quickly the principal balance decreases.
The periodic payment is only one part of the cost of borrowing money. A loan with a relatively low payment may have a higher total cost if the repayment period is significantly longer.
When comparing loans, consider both the periodic payment and the total interest paid over the repayment period. Depending on the loan, additional fees or charges may also affect the actual cost.
This calculator provides an estimate for a standard amortizing loan. Actual loan costs may vary depending on the lender and loan agreement.
Always review the terms provided by your lender before making a borrowing decision.
A loan calculator is a financial tool that estimates loan payments based on information such as the loan amount, interest rate, repayment term, and payment frequency.
For a standard fixed-rate loan, your monthly payment depends primarily on the loan amount, interest rate, and number of monthly payments. Enter those values into the calculator above to estimate your payment.
A longer loan term can reduce the required periodic payment because the balance is spread over more payments. However, a longer term can also result in more total interest over the life of the loan.
No. The calculator focuses on principal and interest for a standard amortizing loan. Fees and other lender-specific costs may change the actual amount you pay.
An amortization schedule shows each payment, the amount applied to principal, the amount applied to interest, and the remaining loan balance.
Yes. The calculator can be used to estimate payments for many standard installment loans, including personal loans, depending on the loan terms.