Free Online Loan Payment Calculator
Quick and accurate calculations
Loan Payment Calculator
Calculate loan payments, compare scenarios, and optimize your borrowing strategy
Loan Details
Ready to Calculate
Enter your loan details to see comprehensive payment analysis, amortization schedules, and optimization recommendations.
- • Payment breakdowns
- • Amortization schedules
- • Extra payment analysis
- • Affordability assessment
- • Refinancing analysis
- • Scenario comparisons
Loan Payment Guide
Essential information about loan payments, interest rates, and smart borrowing strategies
How Loan Payments Work (Fixed-Rate)
Most personal, auto, and mortgage loans use amortized fixed monthly payments. Each month you pay the same amount, but the mix of interest and principal changes over time. Early on, more goes to interest; later, more goes to principal. Extra payments directly reduce the balance and can save years and thousands in interest.
Calculated from loan amount, APR, and term. Stays constant with fixed-rate loans.
Early payments: more interest. Later payments: more principal. Extra payments speed up principal reduction.
Total interest is the main driver of lifetime cost. Reducing rate, term, or balance reduces interest.
How to Use This Calculator
- Enter Loan Amount, Interest Rate (APR), and Term (Years).
- Open Advanced Options to add extra payments, affordability inputs, or refinancing details.
- Click Calculate Payment (or start typing—results auto-update).
- Review tabs: Summary (key numbers), Analysis (affordability/refinance), Schedule (amortization table), and Compare (scenario table).
- Use Export CSV in the Schedule tab to download your amortization table.
Inputs and Options
Core Inputs
- Loan Amount: Total you borrow. Higher amounts increase payment and interest.
- Interest Rate (APR): Annual percentage rate. Lower APR reduces monthly payment and total interest.
- Term (Years): Length of the loan. Longer terms lower payment but increase total interest.
- Loan Type (Advanced): Standard amortizing is supported; interest-only and balloon are UI options here (full engine support coming soon).
Payment Optimization
- Extra Monthly Payment: Adds to principal each month. Shows interest and time savings in Summary.
- Bi-weekly Payments: Simulates 26 payments/year (≈ 13 monthly). Often saves 4–6 years on a 30-year loan.
- One-time / Yearly Extras: Apply windfalls or annual bonuses to reduce balance sooner.
- Start Date: Sets schedule dates for each payment.
Affordability
- Monthly Income & Debts: Computes debt-to-income (DTI) and payment-to-income ratios.
- Risk Bands: DTI ≤ 28%: low risk; ≤ 36%: moderate; ≤ 43%: high; > 43%: very high.
- Recommended Income: Rough target using a 33% rule of thumb.
Refinancing
- New Rate & Closing Costs: Compares current vs. new payment and estimates monthly savings.
- Break-even Point: Months to recover closing costs via savings. Shorter is better.
- Lifetime Savings: Estimated savings over the term (does not yet account for remaining vs. new term differences).
Reading Your Results
Summary
Shows monthly payment, total interest, total cost, and breakdown of principal vs. interest. Optimization cards display savings from extra or bi-weekly payments.
Schedule
Amortization table by month (or yearly view). Export CSV to share or analyze further.
Analysis
Affordability and refinancing modules provide DTI risk, recommended income, break-even months, and estimated savings.
Compare
Compares scenarios like 30-year vs 15-year. Use this to weigh interest savings vs. cashflow.
Tips for Smart Borrowing
- Keep DTI under 36% for flexibility and resilience.
- Even small extra payments early save large amounts of interest.
- Consider bi-weekly if your lender supports it or self-manage by paying extra monthly.
- Refinance when your rate drops ~0.5–1% and you’ll stay beyond break-even.
- Build an emergency fund before committing to aggressive payoff plans.
Important Notes
- This tool models fixed-rate amortized loans. Interest-only and balloon types are displayed as options but not fully simulated yet.
- Taxes, insurance, PMI, and fees are not included in monthly payment figures.
- Refinance lifetime savings assume same total term; remaining-term modeling and NPV are planned enhancements.
Frequently Asked Questions
Your monthly payment is calculated using the loan payment formula that considers your principal amount, interest rate, and loan term. The formula ensures that you pay the same amount each month, with the proportion of principal and interest changing over time. Early payments go mostly toward interest, while later payments go mostly toward principal.
An amortization schedule is a table that shows each payment over the life of your loan, breaking down how much goes toward principal and interest. It's important because it shows you exactly how much equity you're building over time, how much interest you'll pay, and how extra payments can significantly impact your loan.
Bi-weekly payments can save substantial money because you make 26 payments per year (equivalent to 13 monthly payments instead of 12). This extra payment goes directly toward principal, typically saving 4-6 years on a 30-year loan and thousands in interest. The exact savings depend on your loan amount and interest rate.
This depends on your loan's interest rate versus potential investment returns. If your loan rate is higher than what you can safely earn investing, pay down the loan. If you can earn more investing (accounting for risk), investing may be better. Consider your risk tolerance, tax implications, and overall financial situation.
Generally, lenders prefer a total debt-to-income ratio below 36%, with housing payments below 28% of gross income. However, some loans allow up to 43%. Lower ratios provide more financial flexibility and reduce risk of financial stress during income changes or unexpected expenses.
Refinancing typically makes sense when you can lower your interest rate by at least 0.5-1%, plan to stay in the property beyond the break-even point, and the closing costs don't outweigh the benefits. Our calculator shows your break-even point and total savings to help you decide.
Standard loans have fixed monthly payments that include both principal and interest. Interest-only loans initially require only interest payments, with principal payments starting later. Balloon loans have lower initial payments but require a large lump sum payment at the end. Each has different risk profiles and use cases.
Use the 28/36 rule: housing payments should be no more than 28% of gross income, and total debt payments no more than 36%. Consider your other financial goals, emergency fund, and comfort level with debt. Our affordability analysis helps you understand the risk level of different loan amounts.
Interest rates depend on credit score, down payment, loan term, loan type, debt-to-income ratio, employment history, and market conditions. Generally, higher credit scores, larger down payments, and shorter terms result in lower rates. Shop around with multiple lenders to compare offers.
Several strategies can accelerate payoff: make extra principal payments, switch to bi-weekly payments, apply windfalls (bonuses, tax refunds) to principal, or refinance to a shorter term. Even small extra payments early in the loan can save years and thousands in interest due to compound effects.
Still have questions? Our calculators are designed to be accurate and easy to use. If you need more help, consider consulting with a professional for personalized advice.