How to Use the Loan Calculator
Enter the total loan amount you plan to borrow, the annual interest rate offered by your lender, and the loan term in years. The calculator instantly computes your estimated monthly payment, the total amount you will pay over the entire loan, and the total interest cost. An amortization summary breaks down how your payments are split between principal and interest each year.
This calculator works for any type of fixed-rate loan including mortgages, auto loans, personal loans, and student loans. Simply enter the appropriate values for your situation and the results update in real time. You can adjust the inputs to compare different loan scenarios and find the option that best fits your budget.
Understanding Loan Amortization
Amortization is the process of paying off a loan through regular installments over time. In the early years of a loan, a larger portion of each payment goes toward interest, while in later years more goes toward reducing the principal balance. The amortization summary in this calculator shows this shift year by year, helping you understand how your loan balance decreases over time and how much of your money goes to interest versus actually paying down what you owe.