Free Loan Calculator — Monthly Payment, Interest & Amortization
Free Loan Calculator
Enter your loan details to see the monthly payment, total interest, and complete amortization schedule.
Understanding Your Loan
The monthly payment is calculated using the standard amortization formula. Each payment is split between principal and interest:
- Early payments — mostly interest
- Later payments — mostly principal
Formula: M = P x r x (1+r)^n / ((1+r)^n - 1)
- M = Monthly payment
- P = Loan amount
- r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = Total number of monthly payments
Frequently Asked Questions
How is the monthly loan payment calculated?
The monthly payment is calculated using the amortization formula shown above. It ensures the loan is fully paid off at the end of the term.
What is an amortization schedule?
An amortization schedule shows how each payment is split between principal and interest. Early payments are mostly interest; later payments are mostly principal.
Can I use this for a home, car, or personal loan?
Yes. This calculator works for any loan type. Just enter the amount, rate, and term.
Does a shorter loan term save money?
Yes. A shorter term means higher monthly payments but much lower total interest. A longer term means lower monthly payments but higher total interest.
What is the difference between this and the EMI Calculator?
They use the same formula. The EMI Calculator is India-focused with Indian number formatting. This Loan Calculator is global with additional features like a year-by-year amortization schedule and loan type selection.