Loan Calculator
Calculate loan payments, total interest, and amortization schedule
Loan Details
Amortization Schedule (First Year)
| Payment # | Principal | Interest | Total Payment | Balance |
|---|---|---|---|---|
| 1 | $735.23 | $208.33 | $943.56 | $49264.77 |
| 2 | $738.29 | $205.27 | $943.56 | $48526.48 |
| 3 | $741.37 | $202.19 | $943.56 | $47785.11 |
| 4 | $744.46 | $199.10 | $943.56 | $47040.65 |
| 5 | $747.56 | $196.00 | $943.56 | $46293.10 |
| 6 | $750.67 | $192.89 | $943.56 | $45542.42 |
| 7 | $753.80 | $189.76 | $943.56 | $44788.62 |
| 8 | $756.94 | $186.62 | $943.56 | $44031.68 |
| 9 | $760.10 | $183.47 | $943.56 | $43271.58 |
| 10 | $763.26 | $180.30 | $943.56 | $42508.32 |
| 11 | $766.44 | $177.12 | $943.56 | $41741.87 |
| 12 | $769.64 | $173.92 | $943.56 | $40972.24 |
* Showing first 12 payments of 60 total payments
How Loan Calculations Work
This calculator uses the standard amortization formula to calculate fixed loan payments.
Monthly Payment 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)
- n = Total number of payments
Example:
$50,000 loan at 5% annual interest for 5 years:
Monthly payment = $943.56
Total interest = $6,613.70
How to Use
- 1
Enter loan amount
Input the total amount you want to borrow
- 2
Set interest rate
Enter the annual interest rate for your loan
- 3
Choose loan term
Select how many years to repay the loan
- 4
Select payment frequency
Choose monthly, bi-weekly, or weekly payments
- 5
View results
See your payment amount, total interest, and amortization schedule
Frequently Asked Questions
How is the loan payment calculated?
How is the loan payment calculated?
The loan payment is calculated using the standard amortization formula: M = P × [r(1 + r)^n] / [(1 + r)^n - 1], where M is the payment, P is the principal, r is the periodic rate, and n is the number of payments.
What is amortization?
What is amortization?
Amortization is the process of paying off a debt over time through regular payments. Each payment consists of both principal and interest, with the interest portion decreasing over time as the balance reduces.
How can I reduce total interest paid?
How can I reduce total interest paid?
You can reduce total interest by: making larger down payments, choosing shorter loan terms, making extra principal payments, or securing a lower interest rate.
What's the difference between bi-weekly and monthly payments?
What's the difference between bi-weekly and monthly payments?
Bi-weekly payments (26 per year) can save you money on interest and help you pay off the loan faster compared to monthly payments (12 per year), as you make the equivalent of 13 monthly payments per year.