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Results
Monthly Payment
Total Interest Paid
Total Amount Paid
About the Loan Calculator
This calculator uses the **Amortization** method. With this method, your monthly payment remains constant throughout the loan term, but the portion applied to principal vs. interest changes over time: you pay more interest at the beginning and more principal at the end.
Calculation Formula
The formula for the monthly payment (PMT) is:
PMT = P × [ r(1 + r)^n ] / [ (1 + r)^n - 1 ]
Where:
- P = Principal Loan Amount
- r = Monthly Interest Rate (Annual Rate ÷ 12)
- n = Total Number of Payments (Loan Years × 12)
Common Loan Terms
| Loan Type | Typical Term |
|---|---|
| Mortgage | 15 - 30 Years |
| Auto Loan | 3 - 7 Years |
| Personal Loan | 1 - 5 Years |
| Student Loan | 10 - 25 Years |
