Loan payment and amortization calculator
Calculate a fixed-rate loan payment, total interest, and the effect of paying extra each month.
Yearly schedule
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $1,964 | $4,191 | $20,809 |
| 2 | $1,594 | $4,561 | $16,248 |
| 3 | $1,191 | $4,964 | $11,284 |
| 4 | $752 | $5,403 | $5,881 |
| 5 | $274 | $5,881 | $0 |
How it works
The monthly payment on a fixed-rate loan is the amount that pays off the balance exactly over the term. Each month, interest is the balance times the APR divided by 12, and the rest of the payment reduces principal.
Assumes a fixed rate and payments made on time. Lender fees and rounding can change real figures slightly.
Example
With the sample inputs shown above (Loan amount ($) = 25000; APR (%) = 8.5; Term (years) = 5; Extra monthly payment ($) = 0), the calculator returns: Monthly payment: $513; Total interest: $5,775 (Paid off in 5 yr ).
Things to know
Early payments are mostly interest, which is why the balance falls slowly in the first years. Any extra monthly payment goes to principal and can cut years from a long loan. Check that your loan has no prepayment penalty before paying extra.