Calculate your monthly loan payment, total amount paid, and total interest. Works for personal loans, auto loans, student loans, and more.
Monthly loan payments are calculated using the amortization formula:
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
Where: M = monthly payment, P = principal (loan amount), r = monthly interest rate (annual rate ÷ 12), n = total number of payments (years × 12).
Each monthly payment covers two things: interest owed on the remaining balance, and a portion of the principal. In the early months, most of your payment goes toward interest. Over time, as the principal shrinks, more of each payment reduces the balance.
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $304.22 | $254.22 | $50.00 | $9,745.78 |
| 12 | $304.22 | $267.86 | $36.36 | $7,049.68 |
| 36 | $304.22 | $302.70 | $1.52 | $0.00 |