Loan Payment Calculator
Calculate loan payments from loan amount or find loan amount from payment. Supports all payment frequencies with detailed amortization.
Calculate Loan Payments
Choose what you want to calculate
Principal amount to borrow
Annual percentage rate (APR)
Full years of loan term
Extra months beyond years
How often payments are made
Loan Payment Results
Periodic Rate: 0.500%
Total Payments: 60
Payment Frequency: Monthly
Interest/Principal Ratio: 16.0%
Payment Analysis
Payment Schedule Sample
First 12 payments showing how your payments are split between principal and interest:
| # | Beginning Balance | Payment | Interest | Principal | Ending Balance |
|---|---|---|---|---|---|
| 1 | $10,000.00 | $193.33 | $50.00 | $143.33 | $9,856.67 |
| 2 | $9,856.67 | $193.33 | $49.28 | $144.05 | $9,712.62 |
| 3 | $9,712.62 | $193.33 | $48.56 | $144.77 | $9,567.86 |
| 4 | $9,567.86 | $193.33 | $47.84 | $145.49 | $9,422.37 |
| 5 | $9,422.37 | $193.33 | $47.11 | $146.22 | $9,276.15 |
| 6 | $9,276.15 | $193.33 | $46.38 | $146.95 | $9,129.20 |
| 7 | $9,129.20 | $193.33 | $45.65 | $147.68 | $8,981.51 |
| 8 | $8,981.51 | $193.33 | $44.91 | $148.42 | $8,833.09 |
| 9 | $8,833.09 | $193.33 | $44.17 | $149.16 | $8,683.93 |
| 10 | $8,683.93 | $193.33 | $43.42 | $149.91 | $8,534.02 |
| 11 | $8,534.02 | $193.33 | $42.67 | $150.66 | $8,383.36 |
| 12 | $8,383.36 | $193.33 | $41.92 | $151.41 | $8,231.94 |
Notice: Early payments have more interest (red) than principal (green). This ratio reverses over time as the remaining balance decreases.
Example Calculation
Car Loan Example
Loan Amount: $10,000
Annual Rate: 6%
Term: 5 years
Payment Frequency: Monthly
Results
Monthly Payment: $193.33
Total Payment: $11,600
Total Interest: $1,600
Interest Percentage: 16% of loan amount
💡 Loan Payment Tips
Payment Formula
Uses standard amortization formula for equal periodic payments
Payment Frequency
More frequent payments reduce total interest over loan term
Affordability
Ensure monthly payment fits comfortably in your budget
Rate Shopping
Compare rates from multiple lenders to save money
Payment Basics
Understanding Loan Payments
How Loan Payments Work
- •Equal Payments: Most loans use equal periodic payments (amortization)
- •Two Components: Each payment includes principal and interest
- •Interest First: Early payments are mostly interest
- •Principal Later: Later payments are mostly principal
Payment Frequency Effects
- •Weekly: 52 payments per year reduce total interest
- •Bi-weekly: 26 payments per year, like extra monthly payment
- •Monthly: 12 payments per year, most common frequency
- •Annual: 1 payment per year, highest total interest
Loan Payment Formula
Standard Amortization Formula
P: Periodic payment amount
A: Loan amount (principal)
r: Periodic interest rate (annual rate ÷ payments per year)
n: Total number of payments (years × payments per year)
Reverse Formula (Loan from Payment)
This formula calculates the maximum loan amount you can afford based on your desired payment.
Frequently Asked Questions
How do I calculate monthly loan payments?
Use the amortization formula: P = A × [r × (1 + r)^n] / [(1 + r)^n - 1], where A is loan amount, r is monthly interest rate (annual rate ÷ 12), and n is total number of monthly payments.
What's the difference between payment frequencies?
More frequent payments (weekly, bi-weekly) reduce total interest because you pay down the principal faster. However, they also mean higher cash flow requirements and more payment transactions.
Why are early payments mostly interest?
Interest is calculated on the remaining loan balance. Since the balance is highest at the beginning, interest charges are highest. As you pay down the principal, interest charges decrease.
Should I choose the lowest monthly payment?
Not necessarily. While lower payments improve cash flow, they often mean longer terms and more total interest. Consider both affordability and total cost when choosing loan terms.