Loan Calculator — Payments, Interest & Amortization
This free loan calculator uses the standard amortization formula to compute your fixed periodic payment for any loan. Enter the loan amount, annual interest rate, loan term, and compounding and payment frequencies to get instant results.
The full amortization schedule shows exactly how much of each payment goes toward principal vs interest and how your remaining balance decreases with every payment. This helps you plan your budget, compare loan offers, and understand the true cost of borrowing.
Loan Amortization Formula
P = Principal · r = Periodic interest rate
n = Total number of payment periods
How Amortization Works
With a standard amortising loan, every payment is identical in size. Early payments are mostly interest; over time, the interest portion shrinks as the principal balance falls, and more of each payment goes toward repaying the principal. This is called negative amortisation in reverse — or simply amortisation.
How Interest Rate Affects Your Loan Cost
Monthly payment and total interest on a $10,000 loan over 5 years at different rates (monthly compounding):
| Rate | Monthly payment | Total paid | Total interest |
|---|---|---|---|
| 3% | $179.69 | $10,781.40 | $781.40 |
| 5% | $188.71 | $11,322.60 | $1,322.60 |
| 7% | $198.01 | $11,880.60 | $1,880.60 |
| 10% | $212.47 | $12,748.20 | $2,748.20 |
| 15% | $237.90 | $14,274.00 | $4,274.00 |
Frequently Asked Questions
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