Loan Calculator US
Estimate the monthly payment, total interest and total cost of a loan.
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Amortization schedule (yearly)
| Year | Opening | Paid / yr | Interest | Principal | Closing |
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How it works
A loan is repaid in equal monthly installments (EMIs). Each installment covers the interest due that month plus part of the principal, so early payments are mostly interest and later ones mostly principal.
EMI = P × r × (1+r)^n / ((1+r)^n − 1)- P = loan amount
- r = monthly interest rate (annual ÷ 12 ÷ 100)
- n = number of months
- Move the sliders to see the EMI, total interest and full schedule update instantly.
Frequently asked questions
How is my monthly loan payment calculated?
It uses the amortization formula, which spreads the principal plus interest evenly across all payments. Each payment is identical, but early payments are mostly interest and later payments are mostly principal.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal alone. The APR includes certain lender fees, so it is usually a little higher and is the better figure for comparing loan offers.
Does this include fees, taxes or insurance?
No. It calculates principal and interest only. Origination fees, taxes, or optional insurance are not included and would raise your true cost — compare the APR to capture most fees.
Can I save money by paying the loan off early?
Usually yes. Extra principal payments reduce the balance that interest is charged on, shortening the term and lowering total interest — as long as your loan has no prepayment penalty.
What is amortization?
Amortization is the process of paying off a loan with regular equal payments over time, where the interest portion shrinks and the principal portion grows with each payment.
Does a higher credit score lower my payment?
Indirectly, yes. A higher score typically qualifies you for a lower interest rate, and a lower rate reduces both the monthly payment and the total interest paid.
How the loan calculator works
This calculator works out the fixed monthly payment on an amortizing loan — a personal loan, auto loan, or any loan repaid in equal installments. It uses the standard amortization formula M = P × r(1+r)n ÷ [(1+r)n − 1], where P is the amount borrowed, r is the monthly interest rate (the annual rate divided by 12), and n is the number of monthly payments. Every payment is the same dollar amount, but the split between interest and principal shifts over time.
Worked example
Suppose you borrow $25,000 for a car at a 6% APR over 5 years (60 months). The monthly rate is 0.5% (6% ÷ 12), and the formula gives a payment of about $483. Over the full term you repay roughly $28,994 — about $3,994 in interest. In month one, about $125 of that $483 is interest and $358 is principal; by the final payment almost all of it is principal.
Interest rate vs APR
The interest rate is the cost of borrowing the principal. The APR (annual percentage rate) folds in certain fees, so it is usually slightly higher and is the better number for comparing offers. In the United States, lenders are required to disclose the APR under the Truth in Lending Act, which makes it the most reliable apples-to-apples figure when shopping for a loan.
How to pay less interest
Three levers reduce the total interest you pay: a lower rate (a stronger credit score typically earns a better rate), a shorter term (higher monthly payment but far less interest overall), and extra principal payments. Paying even a small amount above the scheduled payment each month shortens the term and can save a meaningful amount over the life of the loan, provided there is no prepayment penalty.
Results are estimates for general guidance in United States and may not reflect the latest local rates, fees or rules. Check official sources before making decisions.