🏦 Loan Calculator
Calculate monthly payments, total interest, and amortization schedules for mortgages, auto loans, and personal loans. See how extra payments save you money.
Principal vs Interest Breakdown
Amortization Schedule (First 12 months)
| Month | Payment | Principal | Interest | Balance |
|---|
Loan Payment Formula
Monthly payment is calculated using the standard amortization formula:
M = P × [r(1+r)n] / [(1+r)n - 1]
Where P = principal, r = monthly rate, n = total payments.
Frequently Asked Questions
Monthly payment = P × [r(1+r)^n] / [(1+r)^n - 1], where P = principal, r = monthly interest rate (annual rate / 12 / 100), n = total number of payments.
Amortization is the process of spreading a loan into a series of fixed payments. Early payments mostly cover interest, while later payments increasingly go toward principal.
On a $300,000 mortgage at 7% for 30 years, you'd pay about $418,527 in total interest — more than the original loan amount. Shorter terms significantly reduce total interest.
Yes! Extra payments go directly toward reducing the principal, which decreases total interest and shortens the loan term. Even small extra payments can save thousands.