What is an amortization schedule?

It's a table showing each monthly payment split into principal and interest portions, plus the remaining balance after each payment.

How does the interest rate affect my payments?

Even a small rate increase significantly raises total cost. A 1% higher rate on a $200,000 30-year loan adds roughly $40,000 in interest.

Should I choose a shorter or longer loan term?

Shorter terms mean higher monthly payments but much less total interest. Longer terms are easier on your budget but cost more overall.

Math & Calculators

Loan Calculator

Calculate monthly payments, total interest, and amortization schedule for any loan.

Processed in your browser

Loan Amount ($)

Enter the total amount you want to borrow

Interest Rate (%/year) (%)

Personal loan average: 7-12%

Loan Term (months)

= 5.0 years

Monthly Payment

$396.02

Total Interest

$3,761.44

Total Payment

$23,761.44

Payment Breakdown (Principal vs Interest)

84.2%

15.8%

Principal (84.2%)Interest (15.8%)

You will pay $3,761.44 in interest over the life of this loan.

Total interest is 18.8% of the borrowed amount.

Recommended ToolTop Finance Resource

NerdWallet

Compare loans, credit cards & investment accounts side-by-side.

Try Free

What is Loan Calculator?

A loan calculator estimates your monthly payments, total interest, and overall cost for any type of loan. Whether it's a personal loan, auto loan, or student loan, understanding these numbers helps you borrow responsibly.

How to Use

Enter the loan amount you plan to borrow
Set the annual interest rate
Choose the loan term in months or years
Review the monthly payment, total interest, and amortization schedule

Formula

Monthly Payment = P x [r(1+r)^n] / [(1+r)^n - 1], where P = principal, r = monthly rate, n = number of payments

Frequently Asked Questions

What is an amortization schedule?: It's a table showing each monthly payment split into principal and interest portions, plus the remaining balance after each payment.
How does the interest rate affect my payments?: Even a small rate increase significantly raises total cost. A 1% higher rate on a $200,000 30-year loan adds roughly $40,000 in interest.
Should I choose a shorter or longer loan term?: Shorter terms mean higher monthly payments but much less total interest. Longer terms are easier on your budget but cost more overall.

View all Finance tools

Understanding Compound Interest: The Power of Time

Stay Updated

Get notified when we add new tools and features.