Comprehensive Loan Payment Calculator
Calculate monthly loan payments, total interest, and see a full amortization schedule. Supports mortgages, auto loans, personal loans, multiple payment frequencies, and extra payments. Explore the concepts of loans and financial planning below.
Loan & Amortization Concepts
What is a Loan? A loan is money lent by a lender (bank, credit union, or individual) to a borrower, who agrees to repay the amount with interest over a set period. The principal is the original loan amount, and interest is the cost of borrowing.
Types of Loans: Common loans include mortgages (for homes), auto loans (for vehicles), and personal loans (flexible use). Each has different interest rates, terms, and requirements.
Interest Rate: This is expressed as an annual percentage rate (APR) and determines how much extra you'll pay on top of the principal. A lower rate means less cost over time.
Amortization: Amortization is the gradual reduction of your loan balance over time as you make periodic payments. Each payment is made up of part principal repayment and part interest. Early payments go mostly toward interest, while later payments reduce the principal more quickly.
Extra Payments: Making extra payments, even small ones, can dramatically lower the total interest and shorten loan payoff time. This calculator allows analysis of the impact of extra payments per period.
Payment Frequency: The more often you pay (e.g., biweekly vs. monthly), the more quickly your principal reduces, potentially saving on interest.
Note: This calculator is educational and for planning purposes only. Actual loan offers may differ – consult your lender or financial advisor for exact terms.