Loan Calculator
Free Loan Payment Calculator: Estimate monthly payments and view a full amortization schedule for any fixed-rate loan (personal, student, etc.).
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Understanding the Loan Payment Calculator
This calculator is an essential tool for understanding the true cost of borrowing. It allows you to determine the monthly payment and total interest for any type of fixed-rate loan, such as a personal loan, student loan, or other financing. It provides a full, interactive amortization schedule to show you exactly where your money goes with each payment.
APR vs. Interest Rate: What's the Difference?
It's important to understand these two terms:
- Interest Rate: This is the base percentage charged for borrowing the money.
- Annual Percentage Rate (APR): This is a broader measure of the cost of borrowing. It includes the interest rate PLUS any lender fees, origination costs, or other charges. The APR gives you a more complete picture of the total cost and is the best number to use for comparing loan offers.
Amortization Explained
Amortization is the process of paying off debt with a fixed repayment schedule in regular installments over a period of time. Each payment consists of two parts:
- Principal: The portion of the payment that reduces your outstanding loan balance.
- Interest: The portion of the payment that covers the cost of borrowing.
In the beginning of the loan term, a larger portion of your payment goes towards interest. As you continue to make payments, more and more of each payment goes towards the principal. Our amortization schedule (available by clicking the 'View Amortization Schedule' button) shows you this breakdown for every single payment. This tool is similar to our more specialized Mortgage Calculator.