This calculator estimates monthly loan payments using standard amortization based on loan amount, rate, and term.
Your payment is based on the loan amount, interest rate, and term using the standard amortization formula. It's designed so each fixed payment covers the interest owed that month plus a portion of the principal.
Amortization is paying off a loan through fixed monthly payments over time. Early payments are mostly interest, while later payments pay off more of the principal balance.
Interest is charged on your remaining balance. Since the balance is highest at the beginning, more of each payment goes to interest. As you pay down the loan, less interest accrues and more goes to principal.
Extra payments go directly toward reducing your principal balance. A lower balance means less interest charged each month, which shortens your loan term and reduces the total you pay.
Yes — most loans allow early payoff. Adding even a small extra payment each month can save you months or years and significantly reduce total interest. Check with your lender about any prepayment penalties.
The interest rate is the base cost of borrowing. APR includes the rate plus fees and other costs, giving a fuller picture of the loan's true cost. This calculator uses the interest rate only.
Yes, but you'll pay significantly more interest over time. A 30-year loan has lower monthly payments than a 15-year loan, but you could pay more than double the total interest.
Yes — both use standard amortization, so this calculator applies to both. It doesn't account for taxes, insurance, or fees, which are common additions to real mortgage payments.