What this calculator shows you
- Any Loan Type
- Works for mortgages, auto loans, personal loans, and more
- Amortization Schedule
- See how each payment splits between principal and interest
- Extra Payments
- Calculate savings from additional payments
- Compare Loans
- Side-by-side comparison of different loan options
How Loan Payments Are Calculated
Loan payments are calculated using the principal amount, interest rate, and loan term. The formula ensures that each payment covers that month's interest plus some principal. Early payments are mostly interest; later payments are mostly principal.
Understanding Amortization
Amortization is the process of spreading loan payments over time. In an amortization schedule, you can see how each payment divides between principal and interest. Understanding this helps you see why extra payments early in the loan save so much money.
Questions people ask
How can I lower my monthly payment?
Increase your down payment, extend your loan term, improve your credit score for a lower rate, or shop around for better offers. Be aware that extending the term means paying more interest overall.
Education only, not personalized financial, tax or investment advice. Results are estimates based on the numbers you enter; real returns vary and losses happen.