Loan Payment & Amortization Calculator
Get instant monthly payment estimates with our quick calculator, or view a complete amortization schedule showing exactly how much of each payment goes to principal vs interest.
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Quick Start: Select Loan Type
Common terms:
Your Monthly Payment
💰 Extra Payment Options
Make extra payments to save thousands in interest and pay off your loan years earlier
Monthly Payment Schedule
| # | Date | Payment | Principal | Interest | Balance |
|---|---|---|---|---|---|
| 1 | Oct 2025 | $1,896 | $271 | $1,625 | $299,729 |
| 2 | Nov 2025 | $1,896 | $273 | $1,624 | $299,456 |
| 3 | Dec 2025 | $1,896 | $274 | $1,622 | $299,182 |
| 4 | Jan 2026 | $1,896 | $276 | $1,621 | $298,906 |
| 5 | Mar 2026 | $1,896 | $277 | $1,619 | $298,629 |
| 6 | Mar 2026 | $1,896 | $279 | $1,618 | $298,351 |
| 7 | Apr 2026 | $1,896 | $280 | $1,616 | $298,070 |
| 8 | May 2026 | $1,896 | $282 | $1,615 | $297,789 |
| 9 | Jun 2026 | $1,896 | $283 | $1,613 | $297,506 |
| 10 | Jul 2026 | $1,896 | $285 | $1,611 | $297,221 |
| 11 | Aug 2026 | $1,896 | $286 | $1,610 | $296,935 |
| 12 | Sep 2026 | $1,896 | $288 | $1,608 | $296,647 |
Showing first 12 months of 360 total payments
ℹ️ This is an estimate
Your actual payment may include additional costs:
- • Property taxes and insurance (for mortgages)
- • PMI if down payment < 20%
- • HOA fees (if applicable)
- • Origination fees or points
Use the tabs above to see detailed breakdowns, extra payment scenarios, and month-by-month schedules.
Methodology & Sources
Our amortization calculator uses the standard loan payment formula: M = P[r(1+r)^n]/[(1+r)^n-1], where M is monthly payment, P is principal, r is monthly interest rate, and n is number of payments.
Mortgage Interest Rates
Average 30-year fixed mortgage rates have ranged from 3-7% in recent years, with rates varying based on credit score, down payment, and economic conditions.
Source: Freddie Mac - Primary Mortgage Market SurveyAuto Loan Rates
New car loans average 5-7% APR, while used car loans range from 6-10% depending on credit score and vehicle age.
Source: Federal Reserve - Consumer Credit RatesTotal Interest on Long-Term Loans
On a 30-year mortgage, borrowers typically pay 50-100% of the original loan amount in interest, depending on the rate.
Source: CFPB - Understanding Your Loan EstimateExtra Payment Impact
Making one extra mortgage payment per year can reduce a 30-year loan to 26 years and save tens of thousands in interest.
Source: Bankrate - Mortgage Calculator with Extra PaymentsDisclaimer: This calculator provides estimated amortization schedules based on the terms you enter. Actual loan terms may include additional costs like PMI, taxes, insurance, and fees not reflected in this calculation. Verify with your lender for exact figures.
What is Loan Amortization?
Loan amortization is the process of paying off a loan over time through regular payments. Each payment is split between principal (paying down the loan balance) and interest (the cost of borrowing).
Early in the loan, most of your payment goes to interest. As the balance decreases, more goes to principal. This is why extra payments in the early years have such a powerful impact—they reduce the principal that future interest is calculated on.
How Loan Payments Work
Example: $300,000 loan at 6.5% for 30 years
Monthly payment: $1,896
First payment breakdown:
- • Interest: $1,625
- • Principal: $271
Payment #180 (halfway through):
- • Interest: $1,169
- • Principal: $727
Final payment:
- • Interest: $10
- • Principal: $1,886
Total interest paid: $382,633 (128% of the original loan!)
The Power of Extra Payments
Extra payments are applied directly to the principal, which reduces the amount of interest charged on future payments. Even small extra payments make a big difference over time.
Without Extra Payment
- • Monthly payment: $1,896
- • Total interest: $382,633
- • Payoff: 30 years
With $200 Extra/Month
- • Monthly payment: $2,096
- • Total interest: $272,478
- • Payoff: 22 years 4 months
- • Saves $110,155!
Strategies to Pay Off Your Loan Faster
- Make biweekly payments: Instead of one monthly payment, pay half every two weeks. You'll make 13 full payments per year instead of 12.
- Round up your payment: If your payment is $1,234, round up to $1,300 or $1,500. The extra goes straight to principal.
- Apply windfalls to principal: Tax refunds, bonuses, and gifts can dramatically reduce your loan balance.
- Refinance to a shorter term: A 15-year mortgage instead of 30-year has higher payments but much less interest.
- Avoid extending your loan: Refinancing to restart the clock can cost you more in the long run, even with a lower rate.
⚠️ Important Considerations
- Prepayment penalties: Some loans charge fees for paying off early. Check your loan terms before making extra payments.
- Emergency fund first: Don't pay extra on your loan if you don't have 3-6 months of expenses saved.
- High-interest debt priority: Pay off credit cards (18%+) before extra mortgage payments (6%).
- Retirement contributions: If your employer matches 401(k) contributions, max that out before extra loan payments.
- Specify "principal only": When making extra payments, tell your lender to apply them to principal, not future payments.
Key Financial Terms
Understand the essential concepts behind this calculator
Frequently Asked Questions
Common questions about the Loan Payment & Amortization Calculator
🎓 Student Loan Data Sources
• Undergraduate Direct Loans: 6.53%
• Graduate Direct Unsubsidized: 8.08%
• Direct PLUS Loans: 9.08%
→ Source: Federal Student Aid - Interest Rates
• SAVE Plan: 5% of discretionary income (undergraduate), 10% (graduate), 0% below 225% FPL
• PAYE Plan: 10% of discretionary income, capped at 10-year standard
• IBR Plan: 10-15% of discretionary income based on loan date
• ICR Plan: Lesser of 20% discretionary income or fixed 12-year payment
→ Source: Federal Student Aid - Income-Driven Repayment Plans
• Requires 120 qualifying monthly payments (10 years)
• Must work full-time for qualifying employer (government/non-profit)
• Remaining balance forgiven tax-free after 120 payments
→ Source: Federal Student Aid - PSLF Program
• Bachelor's degree borrowers: $28,950 average debt
• Total outstanding student loan debt (U.S.): $1.75 trillion
• Average monthly payment: $200-$299 for most borrowers
→ Source: Education Data Initiative - Student Loan Debt Statistics
• Private refinancing rates: 4.5% - 9.5% (varies by credit, term)
• Note: Refinancing federal loans means losing federal protections (IDR, PSLF, forbearance)
→ Source: CFPB - Student Loan Refinancing
Important: Student loan rules change frequently. Always verify current program requirements at StudentAid.gov before making decisions.
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⚠️ Important Disclaimer
This Loan Payment & Amortization Calculator provides estimates for educational and informational purposes only. Actual results may vary significantly based on individual circumstances, market conditions, regulatory changes, and other factors beyond the scope of this calculator.
The calculations and projections provided are based on assumptions and historical data that may not reflect future performance.Past performance does not guarantee future results.
This tool is not financial advice, tax advice, legal advice, or investment advice. For personalized guidance tailored to your specific situation, please consult with qualified professionals including:
- Certified Financial Planner (CFP)
- Certified Public Accountant (CPA) for tax matters
- Licensed attorney for legal matters
- Registered Investment Advisor (RIA) for investment decisions
Data Accuracy: All data sources, statistics, and rates were verified as accurate as of October 2025. Tax rates, market conditions, and other financial data change over time. Always verify current rates and consult official sources.
No Warranties: While we strive for accuracy, we make no warranties or guarantees regarding the accuracy, completeness, or reliability of any information provided. Use this tool at your own risk.