Loan & Amortization Calculator
Free tool · by Daniel HaketKnow the real cost of borrowing. Enter the loan amount, interest rate and term, and this gives your monthly payment, total interest and total repaid — with a chart of your shrinking balance over time.
How amortization works
Each payment is split between interest and principal. Early on, most of your payment goes to interest (because the balance is high); as the balance shrinks, more goes to principal — which is why the balance curve starts shallow and steepens. The total interest is what borrowing actually costs you on top of the amount. Watch it against the loan size: a long term lowers the monthly payment but raises total interest, so cheaper monthly isn't always cheaper overall.
Frequently asked questions
How is a monthly loan payment calculated?
With the amortization formula, which spreads the loan plus interest evenly across the term. This tool computes it from your amount, rate and number of months.
Why is so much early payment interest?
Interest is charged on the outstanding balance, which is highest at the start. As you pay down principal, the interest portion shrinks and more of each payment reduces the balance.
Does a longer term save money?
It lowers the monthly payment but usually raises the total interest, because you owe the balance for longer. Compare total repaid, not just the monthly figure.
Should I borrow at all?
Only if the return beats the cost — pair this with the ROI calculator. And keep your money operations tight first; a platform like Aspire helps with that.
More free calculators
This tool is free and runs entirely in your browser. The link above is an affiliate link: we may earn a commission if you sign up, at no extra cost to you, and it never changes our honest take.