Calculate Loan Payment
$0
Monthly Payment
$0
Total Payment
$0
Total Interest
Understanding Your Loan
This loan calculator uses the standard amortization formula to compute your monthly payment. The formula ensures each payment covers both principal and interest, with more going to interest at first and more to principal over time.
Formula: M = P × [r(1+r)^n] / [(1+r)^n – 1]
Where M = monthly payment, P = principal, r = monthly rate, n = number of payments
Where M = monthly payment, P = principal, r = monthly rate, n = number of payments
Frequently Asked Questions
What is an amortization schedule?
An amortization schedule shows how each loan payment is split between principal and interest over the life of the loan. Early payments are mostly interest; later payments are mostly principal.
How can I reduce my total interest paid?
You can reduce total interest by: (1) Making extra principal payments, (2) Choosing a shorter loan term, (3) Getting a lower interest rate through refinancing, or (4) Making bi-weekly instead of monthly payments.