Loan calculator
Enter the amount, rate and term to see your monthly payment and what the loan really costs.
Monthly payment
Monthly payment: US$391.32
- Total interest
- US$3,479.38
- Total repaid
- US$23,479.38
- Months to repay
- 60
- Interest saved by extra payments
- US$0.00
- Months saved
- 0
Year by year
| Year | Principal repaid | Total interest | Balance at year end |
|---|---|---|---|
| 1 | US$3,498.89 | US$1,196.98 | US$16,501.11 |
| 2 | US$3,733.22 | US$962.65 | US$12,767.89 |
| 3 | US$3,983.24 | US$712.63 | US$8,784.64 |
| 4 | US$4,250.01 | US$445.87 | US$4,534.64 |
| 5 | US$4,534.64 | US$161.24 | US$0.00 |
How it works
This is a standard repayment (amortising) loan: the same payment every month, part interest and part principal. Each month’s interest is the balance times the annual rate divided by 12, so early payments are mostly interest and later ones mostly principal.
An extra monthly payment goes straight to the principal. The balance falls faster, less interest builds up and the loan ends sooner; the totals and the yearly chart then include the extra payments.
Lenders may round payments, charge fees or use a different day count, so their figures can differ by a few cents or more. At 0% the payment is simply the amount divided by the number of months.
Formula
r = annual rate ÷ 12 ÷ 100, n = number of months Payment = L × r ÷ (1 − (1 + r)^−n) Total interest = payment × n − L
Worked example
A loan of 20,000 at 6.5% over 5 years (60 months) costs 391.32 a month, 3,479.38 in interest in total. Paying 100 extra each month clears it in 47 months and saves 823.87 of interest.
Questions people ask
Is the rate an APR?
Enter the loan’s nominal annual rate. An APR can also include fees, so using it here slightly overstates the interest but gives a fair comparison between loans.
Do extra payments always save money?
They reduce interest, but some loans charge an early repayment fee. Check your agreement before overpaying.
Why do early payments barely reduce the balance?
Interest is charged on the outstanding balance, which is largest at the start. As it shrinks, more of each payment goes to principal.