Loan Payment Calculator

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

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

Payment Summary

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

Principal vs Interest

What this means

  • • Term length controls total interest more than most people expect.
  • • Even small extra principal can shorten payoff time.
Plan full debt strategy

Compare next

Most visitors get better outcomes by comparing at least two scenarios.

Debt Payoff

See strategy-level payoff timeline.

Auto Loan

Model trade-in, tax, and down payment.

Savings Goal

Balance debt reduction with cash reserves.

How Loan Payments Work

Payment = principal + interest, spread across time. Three variables drive almost everything: amount, rate, and term.

Loan amount
Interest rate (APR)
Loan term

Fast Ways to Reduce Interest

Pay biweekly

26 half-payments/year = about 1 extra full payment.

Round up monthly

Small overpayments go directly to principal.

Use windfalls

Bonuses/refunds can shorten payoff dramatically.

Refinance thoughtfully

Lower APR helps only when net savings exceed fees.

Compare Lenders on These Items

  • • APR (not just rate)
  • • Total repayment over full term
  • • Prepayment penalties
  • • Origination and servicing fees

Lowest monthly payment is not always lowest total cost.

Frequently Asked Questions

How are loan payments calculated?
Payments are based on loan amount, interest rate, and term using amortization. Early payments are interest-heavier; later payments shift toward principal.
Should I make extra payments on my loan?
Often yes. Extra principal payments usually cut total interest and shorten payoff time, even when the extra amount is small.
What is the difference between APR and interest rate?
Interest rate is borrowing cost on principal. APR includes rate plus certain fees, so it is usually better for lender comparison.
How does loan term length affect my payments?
Shorter terms raise monthly payment but reduce total interest. Longer terms do the opposite.

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