How to use Loan Payment Calculator
- Enter the loan amount.
- Enter the annual interest rate, the term, and whether it is years or months.
- Choose the payment frequency and any extra payment each period.
- The payment and the yearly schedule update as you change the fields.
Example: Loan Payment Calculator
Work out the payment on 100,000 borrowed at 6 percent over 30 years, paid monthly.
Options
- Payment frequency
- Monthly, twice a month, every two weeks or weekly. The annual rate is divided by that many periods per year.
- Extra payment each period
- Adds a fixed amount to every payment. Adding 100 to the example loan clears it in 252 payments instead of 360 and saves 39,900.25 in interest.
- Term unit
- Years or months. The term cannot exceed 50 years or 600 months, and the chosen frequency cannot add up to more than 1,200 payments, so a weekly schedule has a shorter ceiling than a monthly one.
Supported inputs and limits
Where your input is processed
This tool processes your input in this browser. Your text and files are not uploaded to UseFreeTools. Check this tool's limits for anything it may save on your device.
How a fixed payment splits between interest and principal
Interest is charged on the outstanding balance, so a larger share of each early payment goes to interest and a larger share goes to principal later. In the example, year 1 pays 7,194.61 and 5,966.59 of it is interest. By year 5, the yearly payment is still 7,194.61 but interest has fallen to 5,634.43. That is why the balance falls slowly at first and more quickly near the end, and why an extra payment early saves more than the same amount paid late.
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Questions about Loan Payment Calculator
Why is the last payment smaller?
Once the balance falls below the fixed payment, the last payment only has to cover what is left, so the balance lands on zero.
Does it include fees, insurance or taxes?
No. Only principal, rate, term and any extra payment. Escrow and insurance often make the real monthly payment higher.
What does an extra payment do?
It reduces the balance before the next interest charge. On the example, 100 extra each month clears the loan in 252 payments and saves 39,900.25 in interest.
Why is the yearly total not twelve times the payment?
The schedule uses the unrounded payment internally and rounds only for display, so a yearly row can differ from twelve times the shown payment by a few cents.