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Amortization Schedule
Each row shows how your monthly payment is split between principal and interest, and your remaining balance.
| # | Month | Payment | Principal | Interest | Balance |
|---|
How to Use the Loan Calculator
Our free loan calculator helps you quickly understand the true cost of borrowing money. Whether you're planning to take out a mortgage, finance a new car, or cover personal expenses, knowing your monthly payment and total interest upfront can save you thousands of dollars.
Step 1: Enter Your Loan Amount
Type the amount you wish to borrow or use the slider to adjust. For home mortgages, this is typically the home price minus your down payment. For auto loans, it's the vehicle price minus any trade-in value or down payment.
Step 2: Set the Interest Rate
Enter your annual interest rate (APR). This is provided by your lender and varies based on your credit score, loan type, and market conditions. As of 2024, average mortgage rates are around 6–7%, while personal loan rates typically range from 8–25%.
Step 3: Choose the Loan Term
Select how many years you'll take to repay the loan. A longer term means lower monthly payments but significantly more interest paid over the life of the loan. A shorter term means higher payments but less total interest.
Understanding the Amortization Schedule
An amortization schedule shows every single payment you'll make over the life of the loan. In the early months, most of your payment goes toward interest. As time goes on, more and more of each payment goes toward reducing the principal balance. This is called front-loaded interest and is standard for all fixed-rate loans.
How Monthly Payments Are Calculated
The standard formula for a fixed-rate loan monthly payment is:
- M = Monthly payment
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (years × 12)
Frequently Asked Questions
A "good" interest rate depends on the loan type and your credit score. For mortgages in 2024, rates below 6.5% are considered competitive. For personal loans, anything below 10% is generally favorable. Auto loans from dealerships often range from 4–8% for buyers with good credit. Always compare offers from multiple lenders.
A 15-year mortgage has a higher monthly payment but you'll pay far less interest overall — often less than half the total interest of a 30-year loan. A 30-year mortgage has lower monthly payments, freeing up cash for investments or emergencies. Use our calculator to compare both options side-by-side.
Extra payments go directly toward reducing your principal balance, which reduces the amount of interest you'll pay going forward. Even one extra payment per year can shorten a 30-year mortgage by 4–6 years and save $30,000–$60,000+ in interest depending on your loan size and rate.
The interest rate is the base cost of borrowing money. APR (Annual Percentage Rate) includes the interest rate plus any fees, points, or other costs, making it a more complete picture of the true cost of a loan. When comparing lenders, always compare APRs, not just interest rates.
Your credit score is one of the biggest factors lenders use to determine your interest rate. A score above 760 typically qualifies for the best rates. A score between 620–679 may still qualify for a loan but at a significantly higher rate — sometimes 1–3% more. On a $300,000 mortgage, a 1% higher rate can cost over $60,000 in extra interest over 30 years.
Yes — our calculator uses the standard amortization formula used by banks and lenders worldwide. Results are accurate for fixed-rate loans. Note that our calculator does not include property taxes, homeowner's insurance, or PMI for mortgages, which would increase your actual monthly cost. Always confirm figures with your lender.