Loan & Mortgage Payment Calculator
Find your monthly payment on a mortgage, car loan or personal loan — then see the total interest and how much sooner you'd finish by paying a little extra each month.
Where your payments go
Amortization schedule (yearly)
| Year | Principal | Interest | Balance |
|---|
How loan repayment works
When you take out a fixed-rate loan, the lender spreads the cost into equal monthly payments over the term. This is called amortization. Every payment is split two ways: some covers the interest charged that month, and the rest chips away at the amount you still owe (the principal).
Here's the part that surprises most people: at the start of a long loan, the vast majority of each payment is interest. As the balance falls, the interest shrinks and more of every payment goes to principal — so the loan pays down slowly at first and much faster near the end.
The monthly payment formula
M = P × i / (1 − (1 + i)−n)
- M — the monthly payment
- P — the principal (amount borrowed)
- i — the monthly interest rate (annual rate ÷ 12)
- n — the total number of monthly payments
Why extra payments are so powerful
Because interest is charged on your remaining balance, every extra dollar of principal you pay today saves you interest on that dollar for the rest of the loan. Even a small extra amount each month can cut years off a mortgage and save a surprising amount of interest. Try adding an extra payment above and watch the payoff time and total interest drop.
Frequently asked questions
How is a monthly loan payment calculated?
A standard loan uses the amortization formula M = P · i / (1 − (1 + i)^−n), where P is the amount borrowed, i is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. Each month, part of your fixed payment covers interest and the rest reduces the balance. Early on most of the payment is interest; later most of it is principal.
What is amortization?
Amortization is the process of paying off a loan with regular, equal payments over time. Because your balance shrinks each month, the interest portion of every payment falls and the principal portion rises — even though the total payment stays the same. The year-by-year table above shows exactly how that split changes.
How do extra payments help?
Any amount you pay above the required monthly payment goes straight to reducing your principal. That means less interest is charged in every future month, so you finish the loan earlier and pay less interest overall. Add an extra monthly amount above to see the time and interest you'd save.
Does this work for mortgages, car loans and personal loans?
Yes. Any fixed-rate, fixed-term loan with regular monthly payments works the same way, whether it's a mortgage, an auto loan, a student loan or a personal loan. Just enter the amount, rate and term for your specific loan.
Is my information private?
Completely. Every calculation runs in your browser. Nothing you enter is sent to a server or stored anywhere.
CalcOrchard is an educational tool. Results are estimates based on the numbers you enter and assume a fixed rate and regular monthly payments. Your actual loan may include fees, taxes, insurance or a different compounding method. This is not financial advice.