Loan payment calculator

Where the money goes each year

Early payments are mostly interest because interest is charged on the balance still outstanding. As the balance falls, more of the same payment goes to principal.

What this calculator assumes

Every figure above is an illustration produced from the three numbers you entered. It is not a quote, an offer of credit, or a prediction of what any company would approve. The model is a standard fully-amortizing installment loan:

• A fixed interest rate for the whole term. A variable rate would change the payment.
• Equal payments once a month, with interest accrued monthly on the balance still outstanding.
• No fees. Origination fees, closing costs, insurance, escrow, and taxes are excluded — which is the usual reason a stated interest rate and the APR a company discloses are not the same number.
• No extra payments, no missed payments, and no early payoff.

The payment is the standard annuity formula, P = L × r / (1 − (1 + r)−n), where L is the amount borrowed, r is the annual rate divided by twelve, and n is the number of monthly payments. The yearly table is built by stepping the balance month by month, so the split shown is the split a servicer would apply. Ask any company for its own amortization schedule and its APR before you commit.

Compare before you borrow

A lower payment reached by lengthening the term almost always costs more in total interest. Compare the total repaid line, not just the monthly figure. Compare advertised offers or read the guides, then confirm APR, fees, and repayment terms directly with the company.