Loan Payment Calculator

Calculate monthly payments, total interest, and payoff schedule for any loan. See how extra payments can save you money.

$
$1,000$500,000
%
0.5%30%
yr
1 yr30 yr
$
$0$2,000

Payment Summary

Monthly Payment$500.95
Total Interest$5,056.92
Total Amount Paid$30,056.92

Principal vs Interest

How to Calculate Loan Payments

Whether you're taking out a personal loan, student loan, or any other type of installment loan, understanding your monthly payment helps you budget effectively and compare loan offers.

Strategies to Pay Off Loans Faster

  • Biweekly payments — Pay half your monthly amount every two weeks. This results in 26 half-payments (13 full payments) per year instead of 12
  • Round up payments — If your payment is $347, round up to $400. The extra goes straight to principal
  • Apply windfalls — Use tax refunds, bonuses, or gifts to make lump-sum principal payments
  • Refinance — If rates drop significantly, refinancing to a lower rate can save thousands

Frequently Asked Questions

How are loan payments calculated?
Loan payments are calculated using the amortization formula, which factors in the loan amount, interest rate, and term length. The formula ensures equal monthly payments throughout the loan term, with the interest-to-principal ratio shifting over time.
Should I make extra payments on my loan?
Making extra payments can save significant money on interest and reduce your loan term. Even small extra payments of $50-$100 per month can save thousands over the life of the loan. Use the extra payment feature in our calculator to see the impact.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus fees and other costs, giving you a more complete picture of the loan cost.
How does loan term length affect my payments?
A shorter loan term means higher monthly payments but less total interest paid. A longer term means lower monthly payments but more total interest. For example, a $25,000 loan at 7% costs $35,389 total over 3 years vs $41,580 over 7 years.

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