Our loan amortization calculator computes your monthly payment, total interest paid over the life of the loan, and total cost. Essential for comparing mortgage offers, auto loans, and business financing.
Monthly Payment:
Total Interest:
How to Use This Tool
Enter the total loan amount you are borrowing.
Input the annual interest rate in percent.
Enter the loan term in years.
Click Calculate to see your monthly payment and total cost of the loan.
The Formula
Uses the standard amortization formula: M = P x [r(1+r)^n] / [(1+r)^n - 1] where P is the principal, r is the monthly interest rate, and n is the total number of payments.
Why It Matters
You take a $200,000 mortgage at 6.5% for 30 years. Your first payment is mostly interest ($1,083) with only $206 to principal. After 5 years, you paid $58,000 total but only $26,000 toward principal.