Loan Calculator
See your monthly payment, total interest and amortization schedule in seconds.
Result
Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $9,455.96 | $7,455.96 | $2,000.00 | $92,544.04 |
| 2 | $9,455.96 | $7,605.08 | $1,850.88 | $84,938.96 |
| 3 | $9,455.96 | $7,757.18 | $1,698.78 | $77,181.78 |
| 4 | $9,455.96 | $7,912.32 | $1,543.64 | $69,269.46 |
| 5 | $9,455.96 | $8,070.57 | $1,385.39 | $61,198.89 |
| 6 | $9,455.96 | $8,231.98 | $1,223.98 | $52,966.90 |
| 7 | $9,455.96 | $8,396.62 | $1,059.34 | $44,570.28 |
| 8 | $9,455.96 | $8,564.55 | $891.41 | $36,005.73 |
| 9 | $9,455.96 | $8,735.85 | $720.11 | $27,269.88 |
| 10 | $9,455.96 | $8,910.56 | $545.40 | $18,359.32 |
| 11 | $9,455.96 | $9,088.77 | $367.19 | $9,270.55 |
| 12 | $9,455.96 | $9,270.55 | $185.41 | $0.00 |
How it is calculated
The tool uses the fixed-payment annuity formula: M = P × r × (1 + r)n / ((1 + r)n − 1), where P is the loan amount, r is the monthly interest rate as a decimal (2% becomes 0.02) and n is the number of monthly payments. If the rate is 0, the payment is simply P / n. Total payment is M × n and total interest is that total minus P.
The schedule then runs month by month: interest = balance × r, principal = payment − interest, and the new balance is the old balance minus the principal. The term is rounded down to a whole number of months, and the rate is not annualised, so convert an annual rate yourself first.
Worked example
Borrow 100,000 at 2% per month for 12 months. Here r = 0.02 and (1.02)12 ≈ 1.2682, so the payment is 100,000 × 0.02 × 1.2682 / 0.2682 = $9,455.96 per month. Over 12 payments you pay $113,471.52 in total, of which $13,471.52 is interest. In month 1 the interest is 100,000 × 0.02 = $2,000.00, so only $7,455.96 of your first payment reduces the balance.
Common mistakes
- Typing the annual rate in the monthly-rate field. A 24% yearly rate must be entered as roughly 2 here, not 24, or the payment will be wildly overstated.
- Entering the term in years instead of months; a 5-year loan is 60, not 5.
- Expecting the result to include fees, insurance or tax charges, which many lenders add on top of the plain interest payment.
- Assuming a quoted flat rate equals this declining-balance calculation; flat-rate loans charge interest on the original amount and cost more.
About this calculator
This tool works out the fixed periodic payment needed to pay off a borrowed amount over a set term at a given interest rate, using standard amortization math. Each payment is split between interest, which is charged on the remaining balance, and principal, which actually reduces what is owed, so the mix shifts from mostly interest early on to mostly principal near the end.
It is commonly used by anyone weighing a personal loan, car loan, or similar installment debt before signing, since it turns a rate and term into a concrete monthly figure and a total interest cost. Shoppers comparing two loan offers with different rates or lengths often run both through the calculator side by side to see which one actually costs less over time.
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