How to Use the Loan Calculator
Enter the total amount you want to borrow in the Loan Amount field.
Enter the annual interest rate as a percentage (e.g. 5 for 5%).
Enter the loan term as the total number of monthly payments (e.g. 60 for 5 years).
Click Calculate to see your monthly payment, total paid, and full amortization schedule.
Use Export PDF to save a copy of the results.
Amortization Formula Mechanics
The calculation divides the annual interest rate by 12 and 100 to derive the monthly rate before applying it to the total number of payments. Every payment first covers that month's interest, calculated as the remaining balance multiplied by the monthly rate. The remainder of the payment reduces the principal balance. Because interest is charged on the outstanding balance, early payments are weighted heavily toward interest. As the balance falls over time, more of each payment goes toward principal until the loan is fully repaid.
Worked Example
- Enter a loan amount of 10,000.
- Enter an annual interest rate of 5 (for 5% per year).
- Enter a term of 60 months (5 years).
- Click Calculate. The monthly payment will be approximately 188.71.
- Total paid over 60 months is approximately 11,322.74, of which 1,322.74 is interest.
- In month 1, roughly 41.67 goes to interest and 147.04 to principal. By month 60, nearly the full payment is principal.
- Scroll down to the amortization table to see the exact split for every month.
When to Use This Calculator
- Before applying for a personal loan, auto loan, or home improvement loan
- Comparing two loan offers with different interest rates or repayment terms
- Deciding how many months to spread payments over to keep them affordable
- Estimating total interest paid over the life of a loan
- Understanding how a larger down payment reduces total interest charged
- Verifying a lender's quoted monthly payment before signing
Fixed Rate vs. Variable Rate Loans
Key Features
Full Amortization Schedule
See exactly how each monthly payment splits between principal and interest, from month one through the final payment.
Any Fixed Rate Loan
Personal loans, auto loans, home improvement loans, and mortgages all follow the same amortization formula this calculator uses.
Client-Side PDF Generation
Create a formatted document with key figures and the full amortization table directly in the browser for saving or sharing.
Offline Calculation Engine
All calculations execute within your browser environment. No data is sent to external servers.
Privacy and Security
This calculator runs entirely in your browser using JavaScript. No loan amounts, rates, or results are transmitted to any server, stored, or logged. It is safe to use with real financial figures.
Frequently Asked Questions
What formula does this calculator use?
This tool applies the standard fixed-rate amortization formula to calculate monthly payments based on principal, interest rate, and term. The system divides the annual interest rate by 12 and 100 to derive the monthly rate before applying it to the total number of payments. Users receive precise results for principal and interest without accounting for extra payments or variable rates.
Why do early payments have more interest?
Interest each month represents a percentage of the remaining loan balance, which is highest at the start of the term. Consequently, the initial payments cover a larger portion of interest while reducing the principal slowly. As the balance decreases over time, each subsequent payment allocates more toward the principal and less toward interest.
Can I use this for a mortgage?
Yes, this calculator handles standard fixed-rate mortgages using the same mathematical formula. Users should enter the loan amount, annual interest rate, and term in months, such as 360 for a 30-year loan. Please note that the output excludes property taxes, insurance, or private mortgage insurance (PMI).
What if the interest rate is 0%?
The calculator supports zero percent interest rates by dividing the principal directly by the number of months. In this scenario, the monthly payment remains constant, and the total interest accrued is exactly zero. This feature allows users to model interest-free financing or promotional periods accurately.
Does this support extra payments or lump sum payoffs?
This calculator assumes equal monthly payments and does not process extra contributions or lump sum payoffs. Users seeking to model variable payment schedules or accelerated payoff strategies should utilize a dedicated amortization tool with those specific features. The current output strictly follows the standard fixed-rate amortization schedule.