Loan Calculator
Calculate your monthly loan payments, total interest, and create detailed amortization schedules. Perfect for personal loans, auto loans, mortgages, and business financing decisions.
Loan Details
Enter your loan information to calculate payments
Loan Types
Mortgage Loans
15-30 year terms, typically 3-7% interest rates
Auto Loans
3-7 year terms, typically 3-10% interest rates
Personal Loans
2-7 year terms, typically 6-35% interest rates
How Loan Payments Work
Understanding how loan payments are calculated can help you make better financial decisions. Your monthly payment consists of two parts:
- Principal: The amount that reduces your loan balance
- Interest: The cost of borrowing money
Early in your loan term, most of your payment goes toward interest. As time progresses, more of your payment goes toward principal, gradually reducing your debt.
Tips to Save on Loan Interest
- Make extra payments: Even small additional payments can save thousands in interest
- Choose shorter terms: Higher monthly payments but significantly less total interest
- Round up payments: Round your payment to the nearest $50 or $100
- Make bi-weekly payments: 26 bi-weekly payments equal 13 monthly payments per year
- Shop for better rates: Even 0.5% difference can save thousands
Frequently Asked Questions
What factors affect my loan interest rate?
Your credit score, loan amount, loan term, down payment, and current market rates all influence your interest rate.
Should I choose a longer or shorter loan term?
Shorter terms mean higher monthly payments but less total interest. Longer terms offer lower monthly payments but cost more over time.
How much should I put down on a loan?
A larger down payment reduces your loan amount, monthly payments, and total interest. Aim for at least 20% for mortgages and 10-20% for auto loans.