Loan Calculator
See your payment, total interest, and payoff date instantly — for auto, personal, student, or business loans. Every number updates as you type.
Loan details
Updates as you typeAmortization
| Year | Payment | Principal | Interest | Balance | Paid off |
|---|
Balance over time
—Examples
How It Works
Your payment amount depends on three main factors: the loan amount, the interest rate, and the repayment term. A higher interest rate or longer term increases the total interest you pay, while a shorter term means higher payments but less total interest. The standard amortization formula calculates a fixed payment that fully repays the loan over the specified term.
Payment frequency affects your total cost. Biweekly payments (every two weeks) result in 26 payments per year — equivalent to 13 monthly payments instead of 12 — which pays off your loan faster and reduces total interest. Weekly payments have a similar accelerating effect.
Extra payments go directly toward your principal, reducing the balance faster. Even small extra amounts can save significant money: an extra $50/month on a $25,000 loan at 6.5% over 5 years saves hundreds in interest and pays off the loan months early.
Tips & Best Practices
Frequently Asked Questions
How are loan payments calculated?
Loan payments use the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the principal, r is the periodic interest rate, and n is the total number of payments. This produces a fixed payment that fully repays the loan over the term.
What is the difference between monthly and biweekly payments?
Monthly payments result in 12 payments per year. Biweekly payments are made every two weeks, resulting in 26 half-payments per year — equivalent to 13 monthly payments. This extra payment per year reduces your principal faster and saves on total interest.
How do extra payments save money?
Extra payments go directly toward reducing your principal balance. Since interest is calculated on the remaining balance, a lower balance means less interest accrues each period. This creates a compounding savings effect that shortens your loan term and reduces total interest paid.
Should I choose a shorter or longer loan term?
Shorter terms have higher payments but lower total interest. Longer terms offer lower payments but cost more overall. Choose a term where the payment fits comfortably in your budget while minimizing total interest. You can always make extra payments on a longer-term loan for flexibility.
What is an amortization schedule?
An amortization schedule is a table showing every payment over the life of your loan, broken into principal and interest portions. Early payments are mostly interest, while later payments go primarily toward principal. It helps you understand exactly how your loan balance decreases over time.
Does this calculator work for all loan types?
Yes, this calculator works for any fixed-rate, fully amortizing loan including auto loans, personal loans, student loans, and business loans. It does not account for variable rates, interest-only periods, or balloon payments.