Loan Payment Calculator

How Loan Payments Are Calculated

Loan payments use the standard amortization formula, which ensures each payment covers both interest and principal so the loan is paid off exactly at the end of the term. Early in the loan, most of your payment goes to interest. Later, most goes to principal — this is how amortization works.

The True Cost of a 30-Year Mortgage

On a $300,000 mortgage at 6.5% for 30 years, your monthly payment is $1,896. But over 30 years, you'll pay $382,560 in interest on top of the $300,000 principal — a total of $682,560. Choosing a 15-year term at the same rate raises your monthly payment to $2,613, but cuts total interest to just $170,340. The 15-year mortgage saves over $212,000.

The Power of Extra Payments

Even a small extra monthly payment can save tens of thousands. Adding just $200/month to a $300,000 mortgage at 6.5% saves over $80,000 in interest and cuts 5+ years off your loan. Always confirm with your lender that extra payments are applied to principal.

Types of Loans This Calculator Supports

This calculator works for any standard fixed-rate amortizing loan: 30-year mortgages, 15-year mortgages, auto loans, personal loans, and student loans. Variable-rate loans require separate calculations as the rate and payment change over time.