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Abacvia

Debt

Loan Payment Calculator

Before you sign, know the payment. Enter a loan amount, rate, and term to get the fixed monthly payment, the total interest you will pay over the life of the loan, and a year-by-year amortization view of the balance.

Common: 3–7 auto · 10 personal · 15/30 mortgage

Results

Monthly payment: $500.95, Total interest: $5,056.96, Total repaid: $30,056.96

Monthly payment
$500.95
60 payments (5-year loan)
Total interest
$5,056.96
Total repaid
$30,056.96
Principal + interest

Amortization by year

YearMonthly paymentInterest paid to dateBalance at year-end
1$500.95$1,729.81$20,718.41
2$500.95$3,127.24$16,104.44
3$500.95$4,166.46$11,132.26
4$500.95$4,819.70$5,774.10
5$500.95$5,056.96$0.00
  • Early in the loan, most of each payment is interest; the balance declines slowly at first (see the amortization chart).
  • Extra principal payments shorten the term and cut total interest without changing the required payment — model them in the Debt Payoff Calculator.

How to use this calculator

  1. Enter the amount you are borrowing — for a car, the price minus your down payment and trade-in; for a mortgage, the home price minus your down payment.
  2. Enter the annual interest rate you are being quoted (APR for the closest estimate).
  3. Enter the loan term in years: 3–7 for auto loans, 15 or 30 for mortgages, 10 for many personal loans.
  4. Check the monthly payment against your budget first, then look at total interest — the term trades one against the other.
  5. Compare two runs: shorter term (higher payment, much less interest) vs longer term (lower payment, more interest).

How the calculation works

monthly payment = P × r ÷ (1 − (1 + r)^−n)
where P = principal, r = APR ÷ 12, n = number of months
(zero-interest: monthly payment = P ÷ n)

This is the standard fixed-payment (annuity) formula every amortizing loan uses: it computes the level payment whose present value equals the principal. Total interest is simply payment × months − principal.

Worked example

Input

A $25,000 car loan at 7.5% APR for 5 years (60 months).

Result

Monthly payment: $500.95. Total repaid: $30,056.96, of which $5,056.96 is interest. At 0% promotional financing, the same loan is $416.67/month with zero interest.

Assumptions and important notes

  • Fixed rate and fixed payment for the entire term (not an adjustable-rate mortgage).
  • Payments are made monthly; interest accrues monthly as principal × APR ÷ 12.
  • Taxes, fees, insurance, and any origination costs are not included — APRs quoted by lenders may embed some fees.
  • The final payment is adjusted by a few cents so the balance lands exactly at zero.

Frequently asked questions

Why does the 15-year mortgage save so much interest?

Two effects stack: the balance is retired twice as fast, and it has half the months to accrue interest at all. Roughly, a 30-year loan at the same rate often costs more than double the total interest. The price is the higher required payment — the calculator shows both sides in two runs.

Does a longer term ever make sense?

Yes, when cash flow is the constraint: the lower required payment protects you in tight months, and you can send extra principal voluntarily when money is available. The discipline risk is real, though — a longer term only saves money if you actually make the extra payments.

How do fees change these numbers?

Origination fees, doc fees, and prepaid items raise your effective cost. Lenders fold most of that into the APR, so comparing APRs (not headline rates) is the fair comparison. For a payment estimate, this calculator with the quoted APR is close enough for planning.

What happens if I pay extra toward principal?

The required payment stays the same, but the loan ends sooner and total interest drops — extra principal earns you effectively the loan’s rate, risk-free. Model the accelerated schedule in the Debt Payoff Calculator with your payment plus the extra.

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