Debt
Loan payment calculator
Enter the loan amount, APR and term to see your monthly payment, then add an extra monthly payment to see how much interest you save.
Some inputs need attention. The results below are from your last valid entries.
Assumptions
The table follows the schedule with extra payments included. Check that your lender applies extra money to principal and charges no prepayment penalty.
Remaining balance by year
| Year | Paid | Interest | Ending balance |
|---|---|---|---|
| 1 | $7,211 | $1,688 | $19,476 |
| 2 | $7,211 | $1,259 | $13,524 |
| 3 | $7,211 | $796.76 | $7,109 |
| 4 | $7,211 | $298.77 | $196.54 |
| 5 | $197.77 | $1.23 | $0 |
How the payment is calculated
A fixed-rate installment loan uses the amortization formula PMT = P × r / (1 − (1 + r)^−n), where P is the amount borrowed, r the monthly rate (APR divided by 12) and n the number of months. At 0% interest the payment is just P divided by n.
The power of extra payments
Assuming your lender applies it to principal, every extra dollar lowers the balance that future interest is charged on. That is why even a modest extra payment can shorten a five-year loan by months and save real money. The chart compares the balance with and without the extra payment.
Choosing wisely
- A longer term lowers the payment but raises total interest. Compare terms before signing.
- Prioritize the highest-rate debt first when paying extra.
- For home loans use the mortgage calculator, and to weigh paying debt against investing see the compound interest calculator.
Frequently asked questions
Does this work for auto and personal loans?
Yes. Any fixed-rate loan with equal monthly payments follows the same math. Enter the APR quoted by the lender and the term in months.
Are fees included?
No. Origination fees, taxes and insurance are not modeled, so your true cost may be higher. Compare loans using APR, which includes many fees.
Will extra payments always reduce interest?
Only if the lender applies them to principal and the loan has no prepayment penalty. Confirm this and specify the extra amount is for principal.
This calculator is for education and illustration. It does not account for taxes, fees or your personal situation unless stated, and is not financial advice.
Related tools
Auto Loan Calculator
Estimate your monthly car payment, sales tax, total interest and total cost from price, down payment, trade-in, APR and loan term.
DebtCredit Card Payoff Calculator
See how long it takes to pay off a credit card and how much interest you will pay with a fixed payment or minimum payments only.
DebtDebt Payoff Calculator
Compare the avalanche and snowball methods, see your debt-free date and how much interest an extra monthly payment saves.