Loan Calculator
Calculate your loan payments, total interest, and amortization schedule for mortgages, auto loans, personal loans, and more. Compare different scenarios to find the best loan option for your needs.
Long-term secured loans for property purchase with lowest interest rates
Principal vs Interest
Payment Breakdown Over Time
| Year | Principal | Interest | Total Payments | Balance |
|---|
Loan Calculator Results
Loan Parameters
Loan Type: Mortgage
Currency: US Dollar ($)
Loan Amount: $250,000
Interest Rate: 5.5%
Loan Term: 30 years
Payment Frequency: Monthly
Start Date: 2026-01-29
Payment Summary
| Metric | Value |
|---|---|
| Periodic Payment | $0.00 |
| Total Principal | $250,000 |
| Total Interest | $0 |
| Total Cost | $0 |
| Payoff Date |
Amortization Schedule
| Payment # | Date | Payment | Principal | Interest | Balance |
|---|
Note: Early in the loan, most of your payment goes toward interest. As you pay down the principal, more of each payment goes toward reducing the loan balance.
Understanding Loan Payments
A loan payment consists of two parts: principal and interest. The principal is the original amount borrowed, while interest is the cost of borrowing that money. In the early years of a loan, most of your payment goes toward interest. As you pay down the principal, more of each payment goes toward reducing the loan balance.
How Loan Amortization Works
Amortization is the process of spreading out a loan into fixed payments over time. Each payment covers both interest and principal, with the interest portion decreasing and the principal portion increasing with each payment. Our calculator shows this breakdown in the amortization schedule.
Impact of Different Loan Terms
| Loan Term | Monthly Payment | Total Interest | Best For |
|---|---|---|---|
| 15 Years | Higher | Lowest | Those who can afford higher payments |
| 20 Years | Moderate | Medium | Balance of affordability and interest savings |
| 30 Years | Lowest | Highest | Those needing lowest possible payments |
Types of Loans
Personal Loan
Unsecured loans for various personal expenses with higher interest rates
Term: Up to 7 years
Amount: $1,000 - $10,000,000
Rate: Typically 10%+
Auto Loan
Secured loans with the vehicle as collateral, typically 3-7 year terms
Term: Up to 7 years
Amount: $5,000 - $30,000,000
Rate: Typically 6%+
Mortgage
Long-term secured loans for property purchase with lowest interest rates
Term: Up to 30 years
Amount: $50,000 - $200,000,000
Rate: Typically 4%+
Student Loan
Education financing with flexible repayment options and potential tax benefits
Term: Up to 20 years
Amount: $1,000 - $15,000,000
Rate: Typically 5.5%+
Tips for Saving on Interest
Make Extra Payments
Even small additional payments can significantly reduce your total interest and shorten your loan term. Specify extra payments in the calculator to see potential savings.
Refinance at Lower Rates
When interest rates drop, refinancing can lower your payments and total interest. Compare current rates with your original rate to evaluate savings.
Choose Shorter Terms
While monthly payments are higher, shorter-term loans have much lower total interest costs. Consider the highest payment you can comfortably afford.
Biweekly Payments
Making half-payments every two weeks results in 26 half-payments (13 full payments) per year, effectively making one extra payment annually.
Loan Comparison Example
Consider a $250,000 loan at 4% interest:
- 30-year term: $1,193 monthly, $429,674 total
- 15-year term: $1,849 monthly, $332,807 total
- Savings: $96,867 in interest with shorter term
Common Loan Terms
Current Average Rates
30-yr Fixed Mortgage: ~7.5%
15-yr Fixed Mortgage: ~6.75%
New Auto Loan: ~7%
Personal Loan: ~11%
Make one extra payment per year to significantly reduce your loan term without feeling the pinch monthly.
Round up your payments to the nearest $100 to chip away at principal faster.
Consider biweekly payments instead of monthly to make an extra payment each year.
When refinancing, calculate the break-even point (when savings exceed costs) before deciding.
Principal
The original amount borrowed, excluding interest.
Amortization
The process of paying off debt with regular payments over time.
APR
Annual Percentage Rate - the true cost of borrowing including fees.
Equity
The portion of property value you own outright (for secured loans).