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Loan Calculator

Calculate the monthly payment, total interest, and true APR for a personal loan, mortgage, or auto loan, plus a full month-by-month amortization schedule. Uses the standard amortization formula, instantly, in USD.

Quick answerA $200,000 loan at 6.5% APR over 30 years (360 payments) has a monthly payment (principal & interest) of about $1,264.14, total payments of about $455,089, and total interest of about $255,089. Enter your own amount, rate, and term below to get your exact payment and full amortization schedule.
3 loan types in one tool Full amortization schedule Free, no sign-up Updated: Jul 22, 2026
Enter the loan amount; we'll calculate your monthly payment.
$
The principal you want to borrow.
Quick amount
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Typical personal loan APRs run about 7%-20%, based on credit.
mo
Total number of payments (e.g. 36 = 3 years).
Quick term
⚙️ Advanced — fees, closing costs & insurance (true APR)
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These items don't change your amortization schedule, but they raise the true APR — the actual cost of borrowing once fees are counted. Mortgages typically carry closing costs and PMI; personal and auto loans sometimes charge an origination fee deducted from the amount you receive.
Monthly payment
Total repayment
Total interest
Effective annual rate
⚠️ Note: This tool models a standard fixed-rate, fully amortizing loan (equal monthly payments). Real-world offers vary by lender and credit profile. Results are for informational purposes only and are not financial or lending advice. For an actual loan, use the official figures in your lender's loan estimate or disclosure.

How is a loan payment calculated?

The full explanation of the amortization formula, APR vs. APY, and what an amortization schedule shows — with worked examples.

Loan calculation means using the amount you want to borrow (the principal), the lender's annual percentage rate (APR), and the term (number of monthly payments) to find the equal payment you'll make every month and the total cost of the loan. Personal loans, mortgages, and auto loans are almost always structured as fully amortizing, fixed-rate loans: the payment is the same every month, but the mix of interest and principal inside that payment changes over time.

What is the loan amortization formula?

Quick answerThe monthly payment is found with: Payment = P × i × (1+i)ⁿ / ((1+i)ⁿ − 1). Here P is the loan amount, i is the monthly interest rate (your APR divided by 12, as a decimal), and n is the term in months. If the rate is zero, payment = P ÷ n. This calculator uses exactly this formula.
  • P — the loan principal (amount borrowed).
  • i — the monthly interest rate, i.e. APR ÷ 12 ÷ 100.
  • n — the term, i.e. the total number of monthly payments.
  • Payment — the fixed monthly payment for the entire term.

What does an amortization schedule show?

Quick answerAn amortization schedule shows the payment, principal, interest, and remaining balance for every month of the loan. Each month's interest equals that month's remaining balance times the monthly rate; the rest of the payment reduces the principal. Early payments are mostly interest; as the term progresses, interest shrinks, the principal share grows, and the balance falls to zero. The calculator above builds this schedule month by month.

That's why payments made early in a loan go mostly toward interest, and your principal balance falls slowly at first. Paying extra toward principal early — or paying the loan off entirely — avoids interest that hasn't accrued yet, which is usually a good deal.

What's the difference between your interest rate and the APR?

Quick answerYour interest rate is the base rate used in the amortization formula. The APR (annual percentage rate) is meant to reflect the total yearly cost including certain fees, but it's still a nominal annual figure — monthly rate × 12. The APY (annual percentage yield) is the effective annual rate after monthly compounding: APY = (1 + APR ÷ 12)¹² − 1. For example, a 6.5% APR is equivalent to about a 6.70% APY.

What fees come with a mortgage, and how do they change your true cost?

Quick answerBeyond the interest rate, mortgages typically include an appraisal fee, title and closing costs (often 2%-5% of the loan amount), and — if your down payment is under 20% — monthly private mortgage insurance (PMI). None of these change your scheduled payment, but they raise the true APR, the real cost of borrowing once fees are spread across the loan. Use the "Advanced" panel above to add these and see your true APR, computed the same general way lenders disclose APR under U.S. Truth in Lending rules.

$200,000 loan — how term length changes your payment

The same $200,000 loan at a 6.5% APR, shown at different terms. For your exact numbers, use the calculator above.

$200,000 loan at 6.5% APR — by term
TermMonthly paymentTotal repaymentTotal interest
120 mo (10 yr)$2,270.96$272,515$72,515
180 mo (15 yr)$1,742.21$313,599$113,599
240 mo (20 yr)$1,491.15$357,875$157,875
300 mo (25 yr)$1,350.41$405,124$205,124
360 mo (30 yr)$1,264.14$455,089$255,089

A longer term lowers the monthly payment but noticeably increases the total interest paid over the life of the loan.

Popular calculations

Related mini calculators: payoff, APR conversion & max loan by budget

Find your remaining loan balance, convert your APR to an effective annual rate, or see the maximum loan your budget supports.

🏁Early payoff / remaining balance
Find the remaining principal after a given number of payments.
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🔁APR → APY converter
Convert a nominal annual rate (APR) into its effective annual rate (APY).
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🎯Max loan by budget
Given a monthly budget, rate, and term, find the largest loan you could take out.
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🚀Extra payment & early payoff simulator
See how a monthly extra payment, a one-time lump sum, or switching to biweekly payments moves your payoff date and cuts total interest — compared to your original schedule.
Biweekly payment modePay half the monthly payment every 2 weeks (26 half-payments/yr ≈ 13 full payments/yr) instead of monthly.
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Loan comparison: compare two scenarios side by side

Enter a different amount, rate, term, or loan type for each scenario and see the monthly payment, total repayment, total interest, and effective annual rate side by side.

Scenario A

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Scenario B

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Rates and terms are whatever you enter — this does not represent an actual loan offer.

Reference tables & practical figures

Illustrative rates by loan type, a payment comparison across loan types, the effect of term length, APR-to-APY conversion, and typical fees.

Illustrative APR ranges by loan type
Loan typeTypical APRTypical termSecured by
Personal loan7% - 20%24 - 84 moUnsecured
Auto loan5% - 9%36 - 72 moThe vehicle
Mortgage (30-yr fixed)6% - 7%180 - 360 moThe home

These are illustrative ranges, not a quote — your actual rate depends on credit, lender, and market conditions.

Monthly payment by loan type (illustrative amount, rate & term)
Loan type (amount · APR · term)Monthly paymentTotal interest
Personal ($15,000 · 11.99% · 36mo)$498.14$2,933
Auto ($30,000 · 6.5% · 60mo)$586.98$5,219
Mortgage ($300,000 · 6.5% · 360mo)$1,896.20$382,633

Amount, rate, and term all move together in practice — mortgages carry much lower rates but far larger balances and longer terms.

$200,000 loan at 6.5% APR — term impact
TermMonthly paymentTotal interest
120 mo$2,270.96$72,515
180 mo$1,742.21$113,599
240 mo$1,491.15$157,875
300 mo$1,350.41$205,124
360 mo$1,264.14$255,089

A longer term reduces the payment but multiplies total interest. A shorter term means less interest but a higher payment.

Nominal APR vs. effective annual rate (APY)
Nominal APREffective annual rate (APY)
6.5% (typical mortgage)6.70%
8.0%8.30%
11.99% (typical personal loan)12.67%

APY = (1 + APR ÷ 12)¹² − 1. Use the effective annual rate when comparing loans quoted with different compounding conventions.

Common one-time & recurring loan costs (U.S., illustrative)
ItemTypical rangeApplies to
Origination fee1% - 8% of amountPersonal, some auto loans
Appraisal fee$300 - $600Mortgage
Title & closing costs2% - 5% of amountMortgage
PMI (private mortgage insurance)0.3% - 1.5%/yr of balanceMortgage, down payment < 20%
Prepayment penalty1% - 2% of balanceVaries by lender, less common today

Add these in the "Advanced" panel of the calculator above to see how they affect your true APR.

Illustrative APR ranges by credit-score band (U.S., unsecured personal loan)
Credit score bandFICO rangeTypical APR
Excellent750+7% - 11%
Good700 - 74911% - 16%
Fair640 - 69916% - 25%
PoorBelow 64025% - 36%+

Illustrative ranges only — actual offers vary by lender, income, debt-to-income ratio, and loan type. Mortgage and auto loan APRs follow the same general credit-score pattern but at lower absolute rates since they're secured. Enter your own expected APR in the calculator above to see your exact payment.

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Loan terms glossary

Short definitions of the core terms used in a loan agreement and amortization schedule.

PrincipalThe amount borrowed. Interest is charged on the outstanding principal balance.
InterestThe cost of borrowing, charged as a percentage of the remaining balance each period.
AmortizationPaying off a loan through regular payments that cover both interest and principal over time.
Amortization scheduleA table showing the payment, principal, interest, and remaining balance for every month of the loan.
TermThe total length of the loan, in months — e.g. 360 months for a 30-year mortgage.
APR (annual percentage rate)The nominal yearly cost of a loan. Monthly rate = APR ÷ 12.
APY (annual percentage yield)The effective annual rate after monthly compounding: (1 + APR ÷ 12)¹² − 1.
Remaining balance (payoff amount)The principal still owed after a given number of payments — what you'd pay to close the loan early.
Origination feeA one-time charge, often 1%-8% of the loan, some lenders deduct from the amount you receive.
Closing costsOne-time mortgage fees (appraisal, title, recording), typically 2%-5% of the loan amount.
PMIPrivate mortgage insurance, often required when a down payment is below 20%; added to the monthly payment.
Fixed-rate loanA loan whose rate and payment stay the same for the whole term, as modeled by this calculator.

In-depth guides

Step-by-step explanations of the most commonly asked loan questions.

How is the payment on a $200,000, 30-year loan at 6.5% calculated? (step by step)

Step 1: Convert the APR to a monthly rate → 6.5% ÷ 12 = 0.5417% (0.0054167 as a decimal).
Step 2: Apply the amortization formula → 200,000 × 0.0054167 × (1.0054167)³⁶⁰ ÷ ((1.0054167)³⁶⁰ − 1) ≈ $1,264.14.
Step 3: Interpret → over 360 monthly payments you'd pay about $455,089 in total, of which $255,089 is interest — more than the original loan amount, which is typical for a 30-year term.

Shortening the term to 15 years (180 payments) at the same rate raises the payment to about $1,742.21/month but cuts total interest to about $113,599 — less than half. Enter your own amount, rate, and term in the calculator above to see the exact numbers and full schedule.

What fees come with a mortgage, and how do they change your true APR?

Beyond the stated interest rate, mortgages commonly include closing costs (appraisal, title search, recording fees — typically 2%-5% of the loan amount) and, if your down payment is below 20%, monthly private mortgage insurance (PMI). None of these change your amortization schedule, but they do change how much borrowing actually costs you.

For example, a $300,000 mortgage at a stated 6.5% APR with $6,000 in closing costs and $150/month in PMI has a true APR of about 7.45% once those costs are spread across the loan — noticeably higher than the advertised rate. The "Advanced" panel in the calculator above adds these costs to the true-APR calculation using the same general method (an internal rate of return) lenders use when disclosing APR under U.S. Truth in Lending rules.

What happens if I pay off a loan early?

If you pay off a loan early, you pay the remaining principal balance plus interest accrued up to that point — you skip all interest that hasn't accrued yet. For example, on a $200,000 mortgage at 6.5% APR over 30 years, after 60 payments (5 years) the remaining balance is still about $187,222, even though you've paid roughly $75,848 in total. That's because only about $12,778 of what you paid went to principal — the rest ($63,070) was interest, since early payments on a long-term loan are interest-heavy.

Some loans carry a prepayment penalty (commonly 1%-2% of the balance), so check your loan agreement before paying extra. Use the "Early payoff / remaining balance" tool above to estimate your own payoff amount at any point in the term.

Frequently asked questions

What is the monthly payment on a $200,000 loan at 6.5% APR for 30 years?
A $200,000 loan at 6.5% APR over 30 years (360 monthly payments) has a monthly payment of about $1,264.14 (principal and interest only). Over the full term you'd pay about $455,089 in total, of which about $255,089 is interest. A shorter term lowers total interest but raises the monthly payment — enter your own numbers in the calculator above to see the full amortization schedule.
How is a loan payment calculated?
Loans in this calculator use the standard amortization (equal-payment) formula: Payment = P × i × (1+i)ⁿ ÷ ((1+i)ⁿ − 1), where P is the loan amount, i is the monthly interest rate (APR ÷ 12), and n is the number of monthly payments. Each month, interest is charged on the remaining balance, and the rest of the payment reduces the principal; over time the interest portion shrinks and the principal portion grows.
What is amortization?
Amortization is the process of paying off a loan through regular, equal payments split between interest and principal. Even though the payment stays the same every month, the mix changes: early payments are mostly interest, later payments are mostly principal. An amortization schedule lists this breakdown for every single payment.
What fees come with a mortgage?
Beyond the interest rate, mortgages typically involve an appraisal fee, title and closing costs (often 2%-5% of the loan amount), and — if your down payment is under 20% — private mortgage insurance (PMI) added to your monthly payment. These items don't appear in the interest rate itself, but they raise your true cost of borrowing. Use the Advanced panel above to add them and see your true APR.
What happens if I pay off my loan early?
If you pay off a loan early, you only owe the remaining principal balance plus interest accrued up to that point — you avoid all future interest that hasn't accrued yet, which typically saves money. Some lenders charge a prepayment penalty (commonly 1%-2% of the balance), though this is less common on personal loans and most conforming mortgages today. Use the "Early payoff / remaining balance" tool to estimate what you'd owe after a given number of payments.
What's the difference between APR and the interest rate?
Your interest rate is the base rate used to calculate interest each period. The APR is meant to reflect the total yearly cost of borrowing, including certain fees, expressed as a single nominal rate. Because APR is a nominal annual figure (monthly rate × 12), it differs from the APY (annual percentage yield), which accounts for monthly compounding: APY = (1 + APR ÷ 12)¹² − 1. When comparing loan offers, compare APRs (or true APRs including fees), not just the advertised interest rate.
What is the difference between a personal loan, a mortgage, and an auto loan?
A personal loan is usually unsecured (no collateral) and carries the highest typical rates and shortest terms. An auto loan is secured by the vehicle, usually with lower rates and terms of 3-7 years. A mortgage is secured by the home, has the lowest typical rates, and the longest terms, often 15-30 years. All three use the same amortization formula — what differs is the rate, term, and whether the loan is secured.
How much loan can I afford based on my monthly budget?
Divide your budget into a maximum loan amount using the reverse amortization formula: Loan amount = Payment × ((1+i)ⁿ − 1) ÷ (i × (1+i)ⁿ). For example, a $1,000-per-month budget at 6.5% APR over 60 months supports a loan of about $51,109. Many lenders also cap your total monthly debt payments at roughly 36%-43% of your gross income (the debt-to-income ratio), so your true affordable amount may be lower. Use the "Max loan by budget" tool for your own numbers.
How much do extra payments or biweekly payments actually save?
Any extra amount you pay above your required monthly payment goes straight to principal, which lowers every future interest charge and shortens your term. Switching to biweekly payments (half your monthly payment every two weeks) results in 26 half-payments per year — the equivalent of 13 monthly payments instead of 12 — which alone can cut several years off a 30-year mortgage and save tens of thousands in interest. Use the "Extra payment & early payoff simulator" above to enter a monthly extra amount, a one-time lump sum, or toggle biweekly mode, and see your new payoff date and interest saved compared with your original schedule.

Methodology & sources

ToolPico's Loan Calculator is a free, independent tool. The calculation engine applies the standard amortization formula directly: monthly payment = P × i × (1+i)ⁿ ÷ ((1+i)ⁿ − 1), where i is the monthly rate (APR ÷ 12). Each month's interest equals the remaining balance times the monthly rate; principal is the payment minus that interest. The true APR shown in Advanced mode uses an internal-rate-of-return (IRR) calculation that spreads one-time fees and monthly insurance across the payment stream — the same general method lenders use to disclose APR under U.S. Truth in Lending Act rules. All calculations run instantly in your browser; no data is sent to a server.

Basis: Standard amortization mathematics; U.S. Truth in Lending Act (APR disclosure methodology). Last updated: July 22, 2026. Results are for informational purposes only and do not constitute financial or lending advice; for an actual loan, use the official figures from your lender's loan estimate or closing disclosure.

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