The Calculator App
Loan
Estimate a loan payment, total interest, and payoff date from amount and APR you enter. This is not a lender quote or tax advice.
$500.95
Illustrative $25,000 loan at 7.5% APR over 5 years. Total interest $5,056.96. Not a quote.
How this loan estimate works
You enter a loan amount, APR, term, start date, and optional extra principal. The page builds a month-by-month amortization schedule and rolls it up by year. Total interest is the sum of interest lines in that schedule.
Amortization shape
Early payments are mostly interest because the balance is high. Over time, the principal portion grows while the contractual payment stays flat on a fixed-rate loan. Extra principal accelerates that shift and shortens the schedule used here.
Questions
- How is the monthly payment calculated?
- This page uses a fixed-rate amortizing schedule. Each month, interest is the unpaid balance times the APR divided by 12, rounded to cents. The contractual payment is the amount that retires the balance over the term you enter, assuming on-time payments and no rate changes. The last payment is adjusted so the balance does not go negative.
- What is the difference between APR and interest rate?
- Here you enter one APR used for every month in the schedule. A lender quote might separate note rate and APR if fees are financed. This calculator does not add origination fees unless you fold them into the amount.
- How does a longer term change the loan?
- A longer term usually lowers the monthly payment and raises total interest if you follow the schedule. The term comparison table shows several terms at the same amount and rate. A lower payment is not the same as paying less overall.
- How do extra payments work?
- Extra principal is applied after the scheduled principal each month, up to the remaining balance. The schedule stops when the balance reaches zero. Interest saved and months saved compare this path to the same loan without the extra amount.
- Are prepayment penalties included?
- No. Some loans charge a fee for paying off early. This model assumes you can prepay without penalty.
- Is this a lender quote?
- No. The rate is the one you type. Fees, taxes, insurance, and daily accrual are not modeled. A servicer payoff statement can differ.