About Loan Calculator
Calculate loan payments, total interest, and view detailed amortization schedule. Perfect for
mortgages, auto loans, personal loans, and more.
Loan Payment Formula
Monthly Payment = P × [r(1 + r)^n] / [(1 + r)^n - 1]
Where:
P = Loan principal (amount borrowed)
r = Monthly interest rate (annual rate / 12)
n = Total number of payments (years × 12)
Example Calculation
Loan Details:
Amount: $200,000
Rate: 6.5% per year
Term: 30 years
Results:
Monthly Payment: $1,264.14
Total Payments: $455,089
Total Interest: $255,089
Understanding Amortization
Amortization is the process of paying off a loan through regular payments. Early payments go mostly
toward interest, while later payments go mostly toward principal.
Common Loan Types
| Loan Type |
Typical Term |
Typical Rate |
| Mortgage (30-year) |
30 years |
6-8% |
| Mortgage (15-year) |
15 years |
5.5-7.5% |
| Auto Loan |
3-7 years |
4-10% |
| Personal Loan |
2-7 years |
6-36% |
| Student Loan |
10-25 years |
4-8% |
Tips for Borrowers
- Shop around for best interest rates
- Make extra principal payments to save on interest
- Consider shorter loan terms for lower total interest
- Check your credit score before applying
- Understand all fees and closing costs
- Don't borrow more than you can afford
Saving Money on Loans
- Extra Payments: One extra payment per year can reduce 30-year mortgage to 26
years
- Refinancing: Lower rate by even 1% can save thousands
- Larger Down Payment: Reduces loan amount and interest paid
- Shorter Term: 15-year vs 30-year mortgage saves ~50% in interest