Loan Calculator: Monthly Payments and Amortization Schedule

Whether you’re shopping for a mortgage, car loan, or personal loan, knowing your monthly payment before you sign is essential. Our free Loan Calculator computes your monthly payment, total interest cost, and provides a year-by-year amortization schedule.

How to Use the Calculator

Enter the loan amount: The total amount you’re borrowing
Set the annual interest rate: The APR on the loan
Choose the loan term: Use the input or quick preset buttons (15, 20, 30 years)
Click Calculate: See your monthly payment, total cost, and amortization breakdown

Understanding the Results

Monthly Payment: The fixed amount due each month for the life of the loan
Total Payment: Monthly payment multiplied by total months
Total Interest: How much you’ll pay in interest over the full term
Interest/Principal Ratio: Total interest as a percentage of the loan amount
Amortization Schedule: Year-by-year breakdown showing how much goes to principal vs. interest

How Amortization Works

In the early years of a loan, most of your monthly payment goes toward interest. Over time, a larger share goes to principal. The amortization table makes this visible — you can see the crossover point where you’re paying more principal than interest each year.

Common Use Cases

Mortgage comparison: Compare 15-year vs. 30-year terms
Car loans: Calculate payments for different vehicle prices and down payments
Student loans: Understand your repayment timeline
Refinancing decisions: See if a lower rate saves enough to justify refinancing costs

Tips

A shorter term means higher monthly payments but dramatically less total interest
Even a 0.5% rate difference can save thousands over the life of a mortgage
Compare total interest paid, not just monthly payment, when evaluating loan options
Use the amortization schedule to see how extra payments would accelerate payoff

Frequently Asked Questions

Does this include property taxes and insurance? No. This calculates principal and interest only. Your actual mortgage payment may include taxes, insurance, and PMI.

Can I calculate bi-weekly payments? This tool shows monthly payments. For bi-weekly, divide the monthly payment by 2 — making 26 half-payments per year effectively adds one extra monthly payment annually.

Is the calculation exact? Yes. It uses the standard amortization formula used by lenders.

Try our free Loan Calculator to calculate your monthly payment.