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Borrowing basics

See the payment and the full cost of a loan.

Estimate a fixed monthly payment, separate principal from interest, and see how the balance changes over time.

Loan details

Year-end amortization

Earlier payments generally contain more interest because the unpaid balance is larger.

YearPayments madeInterest paidBalance

What amortization means

A fixed payment can stay the same while its makeup changes. Interest is calculated on the remaining balance, so more of later payments goes toward principal.

Term changes total cost

A longer term can lower the monthly payment but usually increases total interest because the balance remains outstanding longer.

APR and rate may differ

APR can include certain finance charges. This calculator treats the entered rate as a fixed interest rate and does not convert fees into an APR.

The Consumer Financial Protection Bureau explains amortization as payments being divided between principal and interest, with more interest generally paid early in the term.

This estimate assumes a fixed-rate, fully amortizing loan with equal monthly payments. It excludes origination charges, changing rates, balloon payments, prepayment penalties, taxes, insurance, and lender-specific rounding. Review the lender’s written disclosures before making a borrowing decision.