How do I calculate my monthly loan payment?

Your monthly payment is calculated using the loan amount, interest rate, and loan term. The calculator uses the amortization formula to determine equal monthly payments that cover both principal and interest over the loan period.

What's the difference between simple and compound interest on loans?

Most loans use simple interest calculated on the remaining principal balance. Each payment reduces the principal, so interest charges decrease over time. Compound interest, typically used for investments rather than loans, calculates interest on interest.

Can I pay off my loan early?

Most loans allow early payoff, but some lenders charge prepayment penalties. Check your loan agreement. Paying extra toward principal each month or making additional lump sum payments can significantly reduce total interest paid and shorten your loan term.

How much can I save by making extra payments?

Extra payments directly reduce your principal balance, saving on future interest charges. Even small additional monthly payments can shave years off your loan term and save thousands in interest. Use the calculator to model different prepayment scenarios.

Finance

Loan Calculator

Calculate monthly payments for any type of loan.

Monthly Payment$0.00

Total Principal$25,000

Total Interest$0

Total Cost$0

Amortization Schedule (First 12 Months)

Month	Payment	Principal	Interest	Balance

How this works

This loan calculator uses the standard amortization formula to determine your monthly payments. It assumes a fixed interest rate and fixed monthly payments over the life of the loan.

Principal: The amount of money you borrow.
Interest: The cost of borrowing money, expressed as an annual percentage rate (APR).
Term: The length of time you have to repay the loan.