CalcWealth

Free Loan Calculator — Monthly Payment & Full Amortization Schedule

Enter your loan amount, interest rate, and term to instantly calculate your monthly payment, total interest, and see exactly where every dollar goes year by year.

This free loan calculator uses the standard amortization formula M = P × [r(1+r)^n] / [(1+r)^n − 1] to compute your fixed monthly payment and generates a complete year-by-year breakdown of principal vs. interest. No sign-up required.

What Is a Loan Calculator?

A loan calculator computes the fixed monthly payment required to fully pay off a loan over a specified term at a given interest rate. It also shows the complete amortization schedule — how each payment splits between reducing principal and paying interest.

The key insight: in the early years of a loan, most of your payment goes to interest. By the final year, nearly all of it reduces principal. This is why a $20,000 loan at 6% for 5 years costs $3,199 in interest — not just $386 × 60 months = $23,160 total, but $3,199 more than the original $20,000 borrowed.

Pair this calculator with our mortgage calculator for home loans or the credit card payoff calculator for high-interest revolving debt.

How to Use This Loan Calculator

  1. 1

    Enter the Loan Amount

    The total amount you are borrowing — $1,000 for a small personal loan up to $100,000 for a large home improvement project. This is the principal, before any interest.

  2. 2

    Enter the Annual Interest Rate

    The APR (Annual Percentage Rate) stated on your loan offer. Personal loans: 6–36%. Auto loans: 4–15%. Student loans: 4–8% (federal). The higher the rate, the more you pay over time.

  3. 3

    Set the Loan Term

    How many years to repay. Longer terms = lower monthly payments but much higher total interest. Shorter terms = higher monthly payments but you save thousands. Compare 3-year vs 5-year to see the true cost difference.

Loan Payment Formula

M = P × [r(1+r)^n] / [(1+r)^n − 1]

P = loan amount, r = monthly rate (APR ÷ 12 ÷ 100), n = total months (years × 12).

Example: $20,000 at 6% for 5 years — r = 0.005, n = 60. M = 20000 × [0.005 × 1.005^60] / [1.005^60 − 1] = $386.66/month. Total paid = $23,199.22. Total interest = $3,199.22.

Real-World Loan Examples

Common loan scenarios and their true cost of borrowing.

Personal Loan: $15,000 at 10% for 3 Years

Monthly payment: $484. Total paid: $17,424. Total interest: $2,424. For debt consolidation, if you're replacing 25% APR credit card debt with a 10% personal loan, you save significantly on interest while having a clear payoff date.

Auto Loan: $30,000 at 5% for 5 Years

Monthly payment: $566. Total paid: $33,968. Total interest: $3,968. Auto loans are typically lower-rate because the car secures the loan. Shop rates from your bank, credit union, and the dealership — differences of 2–3% are common and save $1,500–$2,500 on a $30,000 car.

Home Improvement Loan: $50,000 at 8% for 10 Years

Monthly payment: $607. Total paid: $72,768. Total interest: $22,768. On large long-term loans, rate comparison is critical. At 6% instead of 8%, you'd save $7,800 over 10 years. For home improvements specifically, a home equity loan (HELOC) may offer 5–7% — see our mortgage calculator for secured options.

Frequently Asked Questions

How do I calculate my monthly loan payment?
Monthly payment M = P × [r(1+r)^n] / [(1+r)^n − 1], where P = loan amount, r = monthly rate (annual rate ÷ 12), n = total months. Example: $20,000 loan at 6% for 5 years — r = 0.005, n = 60. M = 20000 × [0.005 × (1.005)^60] / [(1.005)^60 − 1] = $386.66/month.
What is an amortization schedule?
An amortization schedule shows how each monthly payment is split between principal and interest. In the early months, most of your payment is interest. As the loan matures, more goes toward principal. By month 60 on a 5-year loan, nearly the entire payment reduces principal. This is why paying extra early saves the most interest.
How much does a $10,000 personal loan cost per month?
$10,000 loan at 8% for 3 years: $313/month. At 12% for 3 years: $332/month. At 15% for 5 years: $238/month. Total interest at 8%/3yr = $1,280. At 15%/5yr = $4,274. The higher the rate and longer the term, the more you pay in total interest — even when monthly payments are lower.
What is a good interest rate for a personal loan?
A good personal loan APR is below 10%. Credit unions typically offer 6–10% for qualified borrowers. Online lenders range 6–36%. Banks average 9–13%. Payday loans and some fintech lenders charge 36–400% — always compare APR, not just the monthly payment. A 1% rate difference on $20,000 over 5 years costs $600 extra.
Should I choose a longer or shorter loan term?
Shorter terms mean higher monthly payments but far less total interest. A $20,000 car loan at 6%: 3-year term = $608/month, total interest $1,887. 5-year term = $386/month, total interest $3,199. 7-year term = $292/month, total interest $4,533. Choose the shortest term your budget can sustain — you save $2,646 going from 7 to 3 years.
Does paying extra on a loan save money?
Yes — substantially. On a $20,000 loan at 6% for 5 years ($386/month), adding $100 extra per month reduces the term to 42 months (saves 18 months) and saves $710 in interest. Adding $200/month pays it off in 37 months and saves $1,026. Extra payments reduce the principal directly, cutting future interest calculations.

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