Loan Calculator
This is a comprehensive loan payment calculator that helps you understand the true cost of borrowing money. It calculates your monthly payments, shows how much interest you’ll pay over the life of the loan, and provides a detailed amortization schedule showing how each payment breaks down between principal and interest.
💰 Loan Calculator
Calculate your loan payments and view amortization schedule
Loan Details
Your Results
Principal vs Interest Breakdown
Amortization Schedule (First Year)
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| Enter loan details and click Calculate to see the schedule | ||||
About Loan Calculator
A loan calculator helps you determine your monthly payments and understand the total cost of borrowing. It uses the loan amount, interest rate, and term to calculate your payment schedule.
How Loan Payments are Calculated
Monthly payments are calculated using this formula:
M = P × [r(1 + r)^n] / [(1 + r)^n – 1]
Where:
• M = Monthly payment
• P = Principal loan amount
• r = Monthly interest rate (annual rate / 12)
• n = Number of payments (years × 12)
Understanding Amortization
Amortization is the process of paying off a loan through regular payments. Each payment consists of:
• Principal: The amount that reduces your loan balance
• Interest: The cost of borrowing the money
Early in the loan, most of your payment goes toward interest. As the loan progresses, more goes toward principal.
Tips for Managing Your Loan
• Make extra principal payments to reduce interest and shorten the loan term
• Consider bi-weekly payments instead of monthly to save on interest
• Shop around for the best interest rates
• Improve your credit score before applying for better rates
• Factor in additional costs like taxes, insurance, and fees
Key Features
1. Monthly Payment Calculation
- Instantly calculates your exact monthly payment amount
- Based on your loan amount, interest rate, and loan term
2. Financial Breakdown
- Total Principal: The original amount you borrowed
- Total Interest: How much extra you’ll pay in interest charges
- Total Amount: The complete cost of the loan (principal + interest)
- Total Payments: Number of monthly payments you’ll make
3. Visual Pie Chart
- Shows the percentage split between principal and interest
- Helps you visualize how much of your total payments go to each
4. Amortization Schedule
- Displays the first year of payments month-by-month
- Shows how each payment is divided between principal and interest
- Tracks your remaining balance after each payment
How to Use the Calculator
Step 1: Enter Your Loan Details
Loan Amount (Principal)
- Enter the total amount you want to borrow
- Example: $200,000 for a home loan
Interest Rate (Annual %)
- Enter the yearly interest rate as a percentage
- Example: 5.5% (not 0.055)
Loan Term (Years)
- Enter how many years you’ll take to repay the loan
- Common terms: 15, 20, or 30 years for mortgages
Step 2: Click “Calculate”
Press the purple Calculate button to generate your results instantly.
Step 3: Review Your Results
Monthly Payment: This is what you’ll pay each month
Breakdown Section: Shows your total costs, including:
- How much you’re borrowing (principal)
- How much interest will you pay
- Your total
- Number of monthly payments
Pie Chart: Visual representation of principal vs. interest costs
Amortization Table: Shows your first 12 monthly payments in detail
Example Calculation
Let’s say you enter:
- Loan Amount: $200,000
- Interest Rate: 5.5%
- Loan Term: 30 years
The calculator will show:
- Monthly Payment: ~$1,135.58
- Total Interest: ~$208,808 (what you pay for borrowing)
- Total Amount: ~$408,808 (total you’ll pay back)
Understanding the Results
Early Payments: Initially, most of your payment goes toward interest. The amortization table shows this clearly.
Later Payments: As time passes, a larger portion of each payment reduces your principal balance, and a smaller portion goes to interest.
This is why making extra principal payments early in the loan can save you thousands in interest!