Payment Calculator
Determine the monthly payment for any fixed-term loan.
Monthly Payment:
$0.00
Amortization Schedule
How to Use the Payment Calculator
This calculator helps you estimate the monthly payment for any type of fixed-term loan. By understanding your potential monthly payment, you can better budget for a major purchase like a home or car, or plan for repaying a personal loan.
Understanding the Results
- Monthly Payment: This is the fixed amount you will need to pay each month for the duration of the loan.
- Total Interest: This shows the total amount of money you will pay in interest over the life of the loan. A lower total interest means the loan is less expensive overall.
- Amortization Schedule: This detailed table and chart show how each of your payments is split between principal (the amount you borrowed) and interest. You can see how your loan balance decreases over time.
Frequently Asked Questions (FAQ)
What is amortization?
Amortization is the process of spreading out a loan into a series of fixed payments over time. While the payment amount stays the same, the portion of each payment that goes toward principal and interest changes. Initially, a larger portion of your payment goes to interest. As you pay down the loan, more of your payment goes toward reducing the principal.
How can I reduce my total interest paid?
You can reduce the total interest you pay by: 1) Choosing a shorter loan term (e.g., a 15-year mortgage instead of a 30-year), 2) Making a larger down payment to reduce the loan amount, or 3) Improving your credit score to qualify for a lower interest rate.
Can I make extra payments?
Yes, most lenders allow you to make extra payments toward your principal. This is a great way to pay off your loan faster and save a significant amount of money on interest. Always check with your lender to ensure there are no prepayment penalties.