Loan calculator
Enter the amount, the annual interest rate and the term to see the monthly payment, the total interest and a payment-by-payment schedule you can download.
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Monthly payment
- Total interest
- 0
- Total paid
- 0
- Number of payments
- 0
Amortization schedule
| No. | Payment | Principal | Interest | Balance |
|---|
Fixed-rate loans with equal monthly payments, interest worked out monthly at one twelfth of the annual rate, and amounts rounded to the cent every month. Terms up to 100 years. Fees, insurance, taxes, balloon payments and variable rates are not included, so a lender's figures may differ slightly. Amounts are plain numbers in whatever currency you use.
How to calculate a loan payment
- Enter the loan amount, the yearly interest rate and the term, in years or months.
- Optionally add an extra amount you will pay every month on top of the required payment.
- Read the monthly payment, total interest and total paid, then scroll the schedule or download it as a CSV file.
How a loan payment is worked out
Most loans and mortgages are amortized: you pay the same amount every month, and each payment covers the interest that has built up on the balance and then pays down some of the principal. Because the balance is highest at the start, the interest part of the early payments is large and the principal part small. As the balance falls, the interest part shrinks and more of each payment goes to principal.
The calculator turns the annual rate into a monthly rate by dividing by 12, finds the level payment with the standard annuity formula, and then builds the schedule one month at a time. Interest for the month is the balance times the monthly rate, rounded to the cent like a lender does it. The rest of the payment reduces the balance. The final payment is whatever clears the balance, so it can differ from the others by a few cents. A rate of 0% needs no formula: the amount is divided evenly across the months.
Paying a little extra each month is one of the cheapest ways to cut interest. The extra goes entirely to principal, so the balance drops faster and the loan ends sooner. Enter an extra amount to see how many payments remain and how much interest you save compared with no extra payment.
Tips
- See what savings or an investment could grow to with the compound interest calculator.
- Compare two rates or work out a change in a payment with the percentage calculator.
- Writing the amount on a cheque? Number to words spells it out.
Questions
How is the monthly payment calculated?
With the standard annuity formula: payment = P × r ÷ (1 − (1 + r)^−n), where P is the amount borrowed, r is the monthly rate (the annual rate divided by 12) and n is the number of monthly payments. The payment is rounded to the cent, and the last payment is adjusted so that the balance ends at exactly zero.
What if the interest rate is 0%?
The loan is simply divided into equal payments: the amount divided by the number of months. The total interest is then zero. Rounding differences, if any, are put into the last payment.
What does the amortization schedule show?
One row for every payment: how much of it goes to interest, how much pays down the principal, and the balance left afterwards. At the start most of each payment is interest; near the end most of it is principal.
How do extra payments help?
An extra amount each month goes straight to the principal, so the balance falls faster, less interest builds up and the loan finishes earlier. The result shows how many payments it takes and the total interest with your extra payment.
Why does my lender's figure differ?
Lenders may charge fees, compound interest differently, count days instead of months or round in another way. Use this as a close estimate, not a quote.
Is what I type uploaded?
No. Everything is calculated in your browser and nothing leaves your device.