Use FinanceMaxing's free Loan Calculator to estimate your monthly payment, total interest, and total cost of a loan. It also generates a detailed amortization schedule so you can see how each payment is split between principal and interest.
Loan Details
$
%
yr
Extra Payments (Optional)
$
Monthly Payment
$0
Total Interest
$0
Total Payment
$0
Early Payoff Estimate
Add an extra monthly payment above to see how much faster you could pay off your loan and how much interest you might save.
New Payoff Time
–
Interest Saved
$0
Months Saved
0
Estimates assume a fixed-rate loan and consistent extra payments over time.
Amortization Schedule
Enter a loan amount, interest rate, and term to view your payment breakdown.
Payment #
Payment
Principal
Interest
Balance
This table shows a standard fixed-rate amortization schedule without extra payments.
About the Loan Calculator
The Loan Calculator helps you estimate your monthly payment, understand how much of each payment goes toward interest versus principal, and see the true long-term cost of borrowing. It's ideal for planning auto loans, personal loans, student loans, and fixed-rate mortgages. The built-in amortization schedule shows every payment over the life of the loan.
Formula Used
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
Where: M = monthly payment P = loan amount (principal) r = monthly interest rate (annual rate ÷ 12 ÷ 100) n = total number of payments (years × 12)
Worked Example
For a $20,000 loan at 6.5% annual interest over 5 years (60 months):
r = 6.5% ÷ 12 ÷ 100 = 0.005417
n = 5 × 12 = 60
M = 20,000 × [0.005417 × (1.005417)^60] / [(1.005417)^60 − 1]
M ≈ $391.32 per month
Total paid ≈ $23,479.20
Total interest ≈ $3,479.20
Understanding Front-Loaded Interest
With amortization, your early payments are mostly interest, and your later payments are mostly principal. This is intentional — you owe the most at the start, so interest is highest. For the $20,000 example above:
Month 1: $391.32 → $283.32 principal + $108.33 interest
Month 30: $391.32 → $331.63 principal + $59.69 interest
Month 60: $391.32 → $389.21 principal + $2.11 interest
Power of Extra Payments
Adding extra principal each month accelerates payoff and saves significant interest. On the same $20,000 / 6.5% / 5-year loan:
Extra/Month
Interest Saved
Months Saved
$50
~$195
~4 months
$100
~$375
~7 months
$200
~$690
~13 months
Disclaimer
This tool provides general estimates for informational purposes only. Results assume a fixed interest rate with no origination fees or prepayment penalties. Always confirm actual payment amounts and loan terms with your lender. For savings or investment growth, see the Compound Interest Calculator.
Frequently Asked Questions
How do I calculate my monthly loan payment?
Monthly payment uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of payments (years × 12). For a $20,000 loan at 6.5% over 5 years, that's a $391.32 monthly payment.
What types of loans can I use this calculator for?
This calculator works for any fixed-rate installment loan: auto loans, personal loans, student loans, home equity loans, and mortgages. It does not apply to revolving credit (like credit cards) or variable-rate loans where the rate changes over time.
Why does so much of my early payment go toward interest?
This is called front-loading and is a natural feature of amortization. On a $20,000 loan at 6.5% for 5 years, your first payment of $391.32 includes roughly $108 in interest and $283 in principal. By month 30, that same $391.32 includes only $60 in interest. Use the amortization schedule below to see exactly how each payment is split.
How does making extra monthly payments help?
Extra payments go entirely toward principal, which reduces the balance faster and cuts future interest charges. On a $20,000 loan at 6.5% for 5 years, adding just $50/month saves roughly $195 in interest and pays it off 4 months early. Larger extra payments produce dramatically larger savings.
What affects my loan interest rate?
The main factors are your credit score, loan term, loan amount, loan type, and current market rates. A credit score of 760+ typically qualifies for the best rates. Each 20-point drop in credit score can raise your rate by 0.25–0.5%. Shopping multiple lenders and comparing APR (not just rate) gives a complete cost comparison.
Should I choose a shorter or longer loan term?
Shorter terms mean higher monthly payments but significantly less total interest paid. A $20,000 auto loan at 6%: over 3 years → $608/mo, total interest $1,900. Over 6 years → $331/mo, total interest $3,800. Choose the shortest term your budget comfortably handles. Avoid stretching terms simply to lower monthly payments if you can manage the higher amount.
Does this calculator include taxes and insurance?
No — this loan calculator covers principal and interest only. For a full mortgage cost estimate that includes property taxes, insurance, PMI, and HOA fees, use the Mortgage Calculator.
How accurate is the Loan Calculator?
The calculator uses the same fixed-rate amortization formula used by lenders and financial institutions. Results are precise for fixed-rate loans with no fees. Actual quotes from lenders may differ slightly due to origination fees, prepayment penalties, or variable-rate adjustments.