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Loan Calculator

Calculate loan payments and see how extra monthly principal changes payoff time and interest.

Inputs

Results update as you edit.

$
%
years
$
$

Scheduled payment

$512.91

The extra-payment path shows whether a small added principal amount is worth it.

Financed amount

$25,000.00

Scheduled interest

$5,774.80

Payoff with extra

54 months

Interest with extra

$5,124.84

Interest saved

$649.96

First month principal

$335.83

How to Calculate a Loan Payment

Principal
The loan amount is the starting balance that must be repaid over the term.
APR or Interest Rate
The rate determines how much interest accrues each month before principal is reduced.
Extra Principal
Optional extra payments reduce the balance faster and can lower total interest.

How to Understand Loan Costs

A loan calculator helps compare the monthly payment, total interest, payoff time, and fees. The same payment can mean very different total cost depending on rate, term, and how quickly the balance falls.

What Factors Affect Loan Cost?

Borrowed Amount

A larger balance raises both payment and total interest exposure.

Interest Rate

Higher rates increase the interest portion of each payment.

Loan Term

Longer terms spread payments out but usually increase lifetime interest.

Origination Fees

Fees can raise the effective cost even when the advertised rate looks low.

Extra Payments

Extra principal can shorten payoff time if your lender applies it to balance.

Prepayment Rules

Some loans limit or penalize early payoff, so check the loan agreement.

Helpful Loan Comparisons

Payment Estimate

Use amount, rate, and term to estimate the required monthly payment.

Interest Savings

Compare standard payoff against a version with extra monthly principal.

Offer Comparison

Compare total cost, not just the payment, when reviewing multiple loan offers.

Frequently Asked Questions

What is included in the loan payment?

The payment estimate includes principal and interest based on the entered rate and term. It does not automatically include insurance, taxes, or lender-specific fees unless entered separately.

Does an extra payment always save interest?

Usually yes when it is applied to principal and there is no prepayment penalty. Confirm how your lender applies extra payments.

Why does a longer term cost more?

A longer term keeps the balance outstanding for more months, so interest has more time to accrue.

What is an origination fee?

An origination fee is a lender charge for making the loan. It can increase the effective cost of borrowing even if the monthly payment is unchanged.

Is this the same as APR?

Not exactly. APR may include certain fees and timing rules. This calculator estimates payment from the entered rate and fee assumptions.