Loan Calculator
Calculate loan payments and create amortization schedules
Loan Terms
- • Principal: Total loan amount
- • APR: Annual Percentage Rate
- • Term: Length of the loan
- • Amortization: Payment schedule
- • Extra Payment: Additional principal
Payment Tips
- • Make extra payments to reduce interest
- • Consider bi-weekly payments
- • Watch out for prepayment penalties
- • Compare different loan terms
- • Include all fees in calculations
This calculator is optimized for mobile devices. Rotate your device for a better view of the amortization schedule.
Frequently Asked Questions
How do you calculate monthly loan payments?
Monthly loan payments are calculated using the formula: PMT = P[r(1+r)^n]/[(1+r)^n-1], where P is the principal, r is the monthly interest rate (annual rate/12), and n is the total number of payments (years × 12).
What is an amortization schedule?
An amortization schedule is a complete table of periodic loan payments showing the amount of principal and interest in each payment until the loan is paid off at the end of its term.
How do extra payments affect a loan?
Extra payments reduce the loan principal directly, which decreases the total interest paid and shortens the loan term. Even small additional payments can significantly reduce the total cost of the loan and help you pay it off earlier.
What is the difference between APR and interest rate?
The interest rate is the basic cost of borrowing money, while APR (Annual Percentage Rate) includes both the interest rate and other loan costs such as fees and mortgage insurance. APR provides a more complete picture of loan costs.
How do bi-weekly payments work?
Bi-weekly payments mean paying half of your monthly payment every two weeks. Since there are 52 weeks in a year, this results in 26 half-payments, or 13 full payments instead of 12, effectively making one extra payment per year and reducing your loan term.