Loan Calculator
See your payment, the total interest and every line of the amortization schedule, with or without extra payments.
- Calculated in your browser
- Formula and rounding
- Reviewed
Payment a monthExample
$193.33
60 payments · final payment $193.21
- Amount borrowed$10,000.0086%
- Interest$1,599.6814%
- Total interest
- $1,599.68
- Total repaid
- $11,599.68
- Cost of credit
- $1,599.68interest + fees
Rate per period: nominal annual rate divided by payments per year
i = r / pr = 0.06p = 12
= 0.005
Level payment (rounded to the minor unit)
PMT = P × i / (1 − (1 + i)^−n)P = 10000i = 0.005n = 60
= 193.33 (exact 193.3280153)
Interest each period, rounded to the minor unit
interest_k = round(balance_(k−1) × i)i = 0.005
= 1599.68
The final payment absorbs the rounding residual
final = balance + interestpayments = 60
= 193.21
Total cost of credit
Σ interest + feesinterest = 1599.68fees = 0
= 1599.68
- Balance
$193.33 a month for 60 payments; total interest $1,599.68.
Assumptions
- Rate 6% is a nominal annual rate divided by 12 payments a year (US/Canada convention).
- 60 monthly payments; interest is charged each period on the outstanding balance and rounded to the minor unit.
- The final payment absorbs rounding differences.
- No extra payments.
- No fees entered.
- Lenders' figures can differ (fees, day-count conventions, payment dates and rounding).
Your numbers stay in your browser. Nothing you type is sent to our servers. More on privacy
Estimates for general information only — not financial, tax or legal advice. Your actual figures depend on your employer’s payroll, your full tax situation, your lender’s or bank’s terms and rules we may not model. Check official sources and speak to a qualified adviser before making decisions. Disclaimer · Report an error
How to calculate loan payments with extra payments
Most personal loans, car loans and student loans are repaid with equal payments. Each payment covers the interest charged that month, and the rest pays down what you owe. Early on, interest takes a large share. Near the end, almost all of each payment goes to the balance. That pattern is called amortization.
This calculator works out the payment for any amount, rate and term, then lists every payment in an amortization schedule. Add a regular extra payment or a one-off lump sum to see how much interest it saves and how much sooner the loan ends. It works in any currency.
- 1
Enter the loan amount, rate and term
Type how much you are borrowing, the interest rate and the number of months or years. Add the start date to get a payoff date.
- 2
Tell the calculator what kind of rate you have
Choose “APR (effective annual)” for a UK or EU style APR, or “nominal annual” if the rate is divided by 12 each month, as is usual in the US and Canada. The page explains both next to the field.
- 3
Add extras and compare
Enter a regular extra payment or one-off lump sums, then choose whether extras shorten the term or lower the payment. The results show the savings, a balance chart with and without extras, and the full schedule.
What this calculator does
- Payment, total interest, total repaid and payoff date
- APR as an effective annual rate (UK/EU) or nominal rate ÷ 12 (US/Canada)
- Regular extra payments and one-off lump sums
- Reduce the term or reduce the payment after extras
- Interest and time saved by extra payments
- Balance chart with and without extras
- Full amortization schedule with CSV export
Worked example: 10,000 over 60 months at 6%
A five-year loan, then the same loan with 50 extra a month
You borrow 10,000 (any currency) at a nominal 6% a year, so the monthly rate is 0.5%, over 60 months.
| Standard | +50 a month | |
|---|---|---|
| Monthly payment | 193.33 | 243.33 |
| Number of payments | 60 | 47 |
| Final payment | 193.21 | 29.00 |
| Total interest | 1,599.68 | 1,222.18 |
Without extras you repay 11,599.68 in total. Paying 50 more each month ends the loan 13 months early and saves 377.50 in interest in this scenario. If the same 6% were an effective annual APR instead, the payment would be 192.59.
How it’s calculated
The payment uses the standard annuity formula: payment = L × i ÷ (1 − (1 + i)^−n), where L is the loan amount, i the rate per payment and n the number of payments. The payment is rounded to your currency’s smallest unit.
Each month, interest is balance × i, rounded. The payment minus that interest reduces the balance. Because of rounding, a few cents are usually left at the end, so the final payment is adjusted to clear the loan exactly. That is why the last payment in the example is 193.21, not 193.33. Extra payments are applied after the scheduled payment and go straight to the balance.
For a nominal rate, i = rate ÷ 12. For an effective annual APR, i = (1 + APR)^(1/12) − 1, which is a slightly lower monthly rate. More detail is on our methodology page.
What APR means in different countries
In the UK and EU, the APR is an effective annual rate that includes interest and compulsory fees, worked out by a set formula. Lenders advertise a representative APR, which at least 51% of accepted borrowers must get, so your own rate can be higher.
In the US, the APR under the Truth in Lending Act is a yearly rate that includes interest plus certain finance charges, such as some fees and points, but it is quoted as a nominal rate, not compounded. That is why the calculator asks which kind of rate you have. Our guide to APR, AER, APY and nominal rates covers this in depth.
Related calculations
For a home loan with overpayments, allowances and a Canadian preset, use the mortgage calculator. To see the same maths from the saving side, try the compound interest calculator. To check what share of a payment goes to interest, the percentage calculator helps. If you have several debts, our guide to debt avalanche vs snowball compares two common ways to order them.
Good to know
- Your lender’s figures may differ by a few cents or more because of fees, the day-count method they use for interest and how they round.
- Some loans charge a fee for paying early. Check your agreement before making extra payments.
- Upfront fees and optional insurance are not included unless you add them, so the total cost may be higher than shown.
- The calculator assumes a fixed rate. If your rate is variable, the payment and total interest will change when the rate does.
What happens to the numbers you type
Your numbers stay in your browser. MoneyOtter works out your results on your device. We don’t send the amounts you type to our servers or store them. If you allow analytics, we record only broad ranges (for example “middle tax band”) to understand how the calculators are used. Like any website with ads, this page also loads advertising scripts; see our Privacy Policy.
The calculator is plain code running in this tab. It makes no network requests with your figures, and nothing is saved when you leave unless you choose to keep it. Read the privacy policy for how ads and analytics work on this site.
Related calculators and guides
Questions people ask
How is a monthly loan payment calculated?
With the annuity formula L × i ÷ (1 − (1 + i)^−n). For 10,000 at a nominal 6% over 60 months, i is 0.005 and the payment is 193.33.
How much interest do extra payments save?
It depends on the size of the extra and how early it starts. On a 10,000 loan at 6% over 60 months, 50 extra a month cuts total interest from 1,599.68 to 1,222.18 and ends the loan after 47 payments.
Is it better to reduce the term or reduce the payment?
Reducing the term usually saves more interest, because the balance falls faster and the loan ends sooner. Reducing the payment keeps the original end date and lowers each payment. The calculator shows both so you can compare them in your scenario.
What is an amortization schedule?
A table of every payment showing how much goes to interest, how much to the balance and what is left owing afterward. You can view it on the page or download it as CSV.
Why is my lender’s payment different from this calculator?
Lenders may add fees, count interest daily rather than monthly, use a different rate type or round differently. Your loan agreement shows the exact figures.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the money itself. The APR also includes certain fees, so it is usually higher. In the UK and EU it is an effective annual rate; in the US it is a nominal rate.
Can I use this as a car loan or personal loan calculator?
Yes. Any fixed-rate loan repaid in equal payments works the same way. Enter the amount you finance after any trade-in or down payment.
Sources and review
- CFPB — What is amortization and how could it affect my auto loan?
- CFPB — Mortgage interest rate vs APR
- eCFR — Regulation Z (Truth in Lending), 12 CFR Part 1026
- FCA Handbook — CONC App 1: Total charge for credit rules (APR)
Estimates for general information only — not financial, tax or legal advice. Your actual figures depend on your employer’s payroll, your full tax situation, your lender’s or bank’s terms and rules we may not model. Check official sources and speak to a qualified adviser before making decisions.
Page reviewed by the MoneyOtter team · Methodology · Changelog · Report an error