Borrowing basics
Calculate your monthly loan payment.
Enter the amount, interest rate, and loan term to estimate your monthly payment. See how much goes toward interest and how the balance falls each year.
Estimated payment
Enter the loan terms to calculate.
Estimated payment
Monthly principal and interest
Budgeted monthly total
Total interest
Principal + interest
Number of payments
First payment
interest and principal
Year-end amortization
Earlier payments generally contain more interest because the unpaid balance is larger.
| Year | Payments made | Interest paid | Balance |
|---|---|---|---|
How your loan balance goes down
Each payment covers interest and part of the amount borrowed. As the balance gets smaller, less of each payment goes to interest.
A longer loan usually costs more interest
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.
Worked example: a $25,000 loan at 7% for five years produces a fixed principal-and-interest payment of about $495 per month. The first payment includes about $146 in interest and $349 toward principal. As the balance falls, the interest portion shrinks and more of each payment goes toward principal.
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. Method and source link reviewed September 29, 2026.
Keep calculating
Related tools
Money
Debt Payoff Calculator
Estimate a payoff date, total interest, and how much time an extra monthly payment could save.
Money
Simple and Compound Interest Calculator
Compare simple and compound interest, effective annual yield, and year-by-year balances.
Money
Savings Goal Calculator
Calculate a monthly savings target or estimate when regular contributions could reach a goal.
Help us keep it useful
See something unclear or incorrect?
Send a correction or tell us what would make this page more helpful. Please include the page address and the specific detail you are referring to.