Free Loan Payment Calculator
Loan Calculator with Extra Payments
Calculate your estimated monthly loan payment, total interest, total repayment cost, and payoff time. Add an extra monthly payment to estimate how much interest you could save and how much sooner you could pay off your loan.
Enter your loan details
Enter your loan amount, annual interest rate, and loan term. You can also add an optional extra monthly payment.
Enter the total amount you plan to borrow.
Enter the annual interest rate for the loan.
See how additional monthly principal payments could reduce interest and shorten your payoff time.
Estimated Loan Payment
Enter your loan details
Your estimated monthly payment, interest, and payoff information will appear here.
How to use this loan calculator
Enter your loan amount, annual interest rate, and repayment term. The calculator estimates your regular monthly principal and interest payment, total interest paid, and total amount repaid over the life of the loan.
You can also enter an optional extra monthly payment. This lets you compare the standard repayment schedule with an accelerated payoff scenario and estimate potential interest savings.
Monthly Payment
Your estimated regular monthly principal and interest payment.
Total Interest
The estimated amount of interest paid over the full loan term.
Total Repayment
The original principal plus estimated interest over the repayment period.
Loan payment formula
A standard fixed-rate amortizing loan payment is based on the amount borrowed, the periodic interest rate, and the total number of payments.
Monthly Loan Payment Formula
M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1]
M = monthly payment
P = loan principal
r = monthly interest rate
n = total number of monthly payments
The monthly interest rate is generally calculated from the annual interest rate, while the number of payments depends on the loan term. For example, a five-year loan with monthly payments normally has 60 scheduled payments.
Loan payment calculation example
Suppose you borrow $30,000 with a fixed annual interest rate of 6% and repay the loan over five years. The calculator uses the loan amount, interest rate, and 60-month repayment period to estimate your monthly principal and interest payment.
Loan amount: $30,000
Annual interest rate: 6%
Loan term: 5 years
Number of monthly payments: 60
Your actual payment may differ depending on lender fees, compounding conventions, payment timing, rounding, insurance, taxes, or other loan-specific costs.
What is loan amortization?
Amortization is the process of gradually repaying a loan through scheduled payments. With a typical fixed-rate amortizing loan, each payment contains both principal and interest.
Earlier payments generally contain a larger interest portion because the outstanding loan balance is higher. As the balance declines, more of each scheduled payment generally goes toward principal.
How extra monthly loan payments can save money
Making extra principal payments can reduce your outstanding loan balance faster. A lower principal balance can reduce future interest charges and shorten the time required to repay the loan.
Use the extra payment field in the calculator to compare your normal repayment schedule with a higher monthly payment. The results estimate potential interest savings and how much earlier the loan could be paid off.
Check how your lender applies extra payments
Loan agreements can differ. Confirm that additional payments are applied to principal and check your agreement for prepayment restrictions, penalties, or other fees before making additional payments.
Short-term vs. long-term loans
Loan term can have a major effect on both your monthly payment and your total borrowing cost.
Shorter Loan Term
A shorter repayment term typically produces higher monthly payments but can reduce the total interest paid over the life of the loan.
Longer Loan Term
A longer repayment term typically reduces the required monthly payment but can increase the total amount of interest paid.
How interest rates affect loan payments
The interest rate determines how much you pay for borrowing money. With the same loan amount and repayment term, a higher interest rate generally means a higher monthly payment and higher total interest cost.
When comparing loan offers, consider more than the monthly payment alone. The interest rate, repayment term, lender fees, prepayment conditions, and total repayment cost can all affect the overall cost of borrowing.
What types of loans can I calculate?
This calculator is designed for standard fixed-rate amortizing loans and can be useful for several common borrowing situations.
Personal Loan Calculator
Estimate monthly payments and total interest for a fixed-rate personal installment loan.
Auto Loan Calculator
Estimate principal and interest payments for a fixed-rate vehicle loan.
Business Loan Calculator
Estimate repayment costs for certain fixed-rate, fixed-payment business loans.
Installment Loan Calculator
Estimate payments for other standard fixed-payment amortizing loans.
What this loan calculator does not include
The calculator focuses on principal and interest for a standard amortizing loan. Depending on your loan, the actual cost may also include additional expenses.
- • Loan origination fees
- • Closing costs
- • Taxes
- • Insurance
- • Late-payment fees
- • Prepayment penalties
- • Dealer or administrative fees
- • Other lender-specific charges
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Coming soonFrequently Asked Questions
How is a monthly loan payment calculated?
A standard amortizing loan payment is calculated using the loan principal, periodic interest rate, and total number of scheduled payments. Each payment generally contains both principal and interest.
How much loan can I afford?
Affordability depends on your income, existing debts, expenses, interest rate, loan term, credit profile, and other financial obligations. This calculator estimates payments but does not determine lender approval or borrowing capacity.
Does making extra payments reduce interest?
It can. Paying down principal sooner can reduce the balance used to calculate future interest. Actual savings depend on your loan terms and how the lender applies additional payments.
How much faster can I pay off my loan with extra payments?
The amount of time saved depends on your remaining balance, interest rate, regular payment, loan term, and the amount of your additional monthly payment. Use the extra payment field above to estimate the difference.
Is a shorter loan term better?
A shorter term usually produces a higher monthly payment but can substantially reduce total interest. A longer term generally lowers the required monthly payment while increasing total interest.
Does this calculator include loan fees?
No. Origination fees, closing costs, taxes, insurance, late fees, prepayment penalties, and other lender charges are not automatically included.
Can I use this calculator for a personal loan?
Yes. You can use it to estimate monthly principal and interest payments for a standard fixed-rate personal installment loan.
Can I use this calculator for an auto loan?
Yes. It can estimate principal and interest for a standard fixed-rate auto loan. Vehicle taxes, dealer fees, rebates, trade-in values, and other costs are not automatically included.
What is the difference between principal and interest?
Principal is the amount of money borrowed. Interest is the cost charged for borrowing that money. A typical amortizing loan payment includes a portion of both.
Is the calculator result the exact amount my lender will charge?
No. The result is an estimate. Actual lender calculations may differ because of fees, compounding conventions, payment dates, rounding, insurance, taxes, or other loan-specific conditions.
This loan calculator is provided for general informational and estimation purposes only. Results are not financial advice, a loan offer, or a guarantee of lender terms. Actual payments, interest, fees, and repayment costs may vary depending on your lender and loan agreement.