Loan Calculator

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Extra principal and the first payment date are in the inspector.

Try a scenario
Amortization ready

Monthly payment with extra principal

$589.15

The scheduled payment is $489.15; the remaining $100.00 goes directly toward principal.

$25,000.00 principal · 6.5% APR · 5-year term

Remaining loan balance

Extra principal steepens the payoff curve and reduces the interest-bearing balance sooner.

Total interest

$3,483.78

Across the projected schedule

Interest saved

$865.44

11 months sooner

Total repaid

$28,483.78

$4,800.00 extra principal

Amortization schedule

Every scheduled payment split between interest and principal, with the balance it leaves behind. Early payments are interest-heavy; extra principal moves that crossover forward.

Amortization schedule — 5 years · $3,483.78 interest over the life of the loan
YearInterestthis yearPrincipalincl. extraExtrato principalBalanceyear end
Year 1$1,459.82$5,610.02$1,200.00$19,389.98
Year 2$1,084.11$5,985.73$1,200.00$13,404.25
Year 3$683.24$6,386.61$1,200.00$7,017.64
Year 4$255.51$6,814.33$1,200.00$203.30
Year 5$1.10$203.30$0.00$0.00

5 years · $3,483.78 interest over the life of the loan

Principal

$25,000.00

Scheduled payment

$489.15

Payoff

in 49 months

Standard payoff

in 60 months

Finance

Back to the tool

Loan Payment Calculator

Estimate the fixed monthly payment on an amortizing loan, then test how an extra monthly payment changes the payoff date and total interest. Follow the full schedule to see each payment split between interest and principal.

Amortization schedule
Monthly
Payment scenario
Extra
Estimated payoff
Date
Zero-rate handling
0%

Step by step

How to use it

  1. 01

    01Enter principal, rate, and term

    Use the amount financed, the annual interest rate, and the contractual length of the loan.

  2. 02

    02Add the starting date

    The date anchors each monthly row and the estimated final payment.

  3. 03

    03Test an extra payment

    The extra amount goes to principal in the model, reducing future interest and often shortening the term.

  4. 04

    04Inspect the schedule

    Early payments are interest-heavy; later payments send more of the same fixed payment to principal.

Worked example

A $25,000 five-year loan

Given

Principal
$25,000
APR
6%
Term
5 years

Fixed-payment formula

monthly rate r = 0.06 / 12
months n = 60
payment = P × r(1+r)ⁿ / ((1+r)ⁿ−1)
        ≈ $483.32
Monthly payment
≈ $483
Total paid
≈ $29,000
Total interest
≈ $4,000

The payment is not the full cost comparison. A longer term can lower the monthly bill while raising the total interest paid.

Why this one

Read the payment and the cost together

Amortization changes the split, not the scheduled payment

With a fixed-rate loan, interest falls as the balance shrinks and principal takes a larger share.

APR may include more than this rate

Lender APR can incorporate certain fees. This calculator models the entered rate and principal, not every disclosure item.

Extra principal saves future interest

Reducing balance sooner lowers the base used for later interest calculations.

Loan rules can limit the model

Prepayment penalties, daily interest, irregular dates, and lender application rules can produce a different schedule.

The judgement call

Which loan comparison is useful?

  • Can this payment fit the monthly budget?

    Monthly payment

    It measures the recurring cash obligation.

  • Which offer costs less overall?

    Total interest and fees

    Term length can make a lower payment more expensive.

  • Should I pay extra?

    Compare payoff scenarios

    The benefit depends on rate, remaining term, and competing uses of cash.

  • Need the lender’s exact payoff quote

    Ask the lender

    Accrued daily interest and fees may not match a monthly model.

Reference

The numbers behind it

Monthly rate
Annual rate / 12
Interest each month
Opening balance × monthly rate
Principal paid
Payment − interest
Zero-rate payment
Principal / number of months

FAQ

Questions, answered plainly

How is a loan payment calculated?

For a fixed-rate amortizing loan, the payment is the amount that reduces the balance to zero across the term while paying interest on the remaining balance each month.

Why is so much of the first payment interest?

Interest is charged on the outstanding balance, which is largest at the beginning. As principal falls, monthly interest falls too.

How do extra payments save interest?

They reduce principal earlier, so every later interest calculation starts from a smaller balance.

Does this calculator include loan fees?

No unless you add them to the financed principal yourself. Origination charges, insurance, and lender-specific fees can change APR and total cost.

Will my lender use the same payoff date?

Not necessarily. Daily interest, payment dates, rounding, prepayment rules, and fees can produce small or material differences.

Loan details and schedules stay in your browser. Verify terms and payoff amounts with the lender before making a decision.

Keep going

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