Loan Payment Calculator

The loan payment calculator computes a periodic payment from a Loan Amount, an annual Interest Rate, and a Loan Term in years. A Minimum Periodic Payment tests a floor payment against the computed one, and optional Loan Fees can be financed into the loan or paid separately, which changes both the principal and the payment. The Compound Period matches the calculation to a monthly or quarterly lender, since the periodic rate depends on how often interest compounds. A Prepayment Amount at a chosen Prepayment Period models an early lump-sum payoff and its effect on the remaining schedule.

Payments for mortgages, auto loans, student loans, and personal loans compare cleanly side by side. Adjusting rate, term, and fees is how offers from different lenders get compared. Prepayment strategies shorten the schedule and reduce total interest, and testing one is how that reduction gets measured before committing to it. Matching a payment to a budget target is how affordability gets validated. Monthly versus quarterly compounding changes both interest accrual and total cost, which is worth checking whenever a lender quotes one or the other.

A 30-year mortgage at 6.50% against a 20-year mortgage at 6.25% on the same principal shows how the shorter term raises the payment while lowering total interest. A one-time prepayment in month 12 reduces both total interest and the total number of payments. An auto loan with a 2% origination fee included in financing, compared against the same loan with fees excluded, shows the difference in total cost between financing a fee and paying it upfront. The amortization table is where the payment identifies the point each period at which principal overtakes interest.

The Monthly Loan Payment and the Total Number of Payments show cash flow and duration together. Cumulative Payments and Total Interest Paid measure the full cost of the loan beyond the monthly figure. Prepayment Savings isolates the interest and time saved when a lump sum is applied. The amortization table tracks period-by-period interest, principal, and ending balance, and can be exported or copied for documentation or budgeting.

Fixed-rate loans such as mortgages, auto loans, personal loans, and most student loans all fit this calculation. Variable rates are not supported.

Financing fees increases the principal and the payment. Excluding fees keeps the payment lower while paying fees upfront. Both approaches change total cost.

Monthly compounding matches a lender that calculates interest monthly; quarterly matches a product that compounds quarterly. Matching the lender's own rule produces the most accurate totals.

This version supports a single lump-sum prepayment at a chosen period. Recurring extra payments can be approximated by reducing the term or increasing the minimum payment and comparing the resulting scenarios.

The periodic payment follows the standard formula M = P x [r(1 + r)^n] / [(1 + r)^n - 1], where P is principal, r is the periodic rate, and n is the number of periods. The amortization schedule applies interest to the current balance, subtracts principal, and updates the remaining balance each period. A prepayment at the chosen period reduces the balance immediately, and interest for every subsequent period is recalculated on that reduced balance.

This tool is intended for informational and educational purposes only. It does not provide financial, investment, or tax advice. The amounts and payments shown are estimates and may not reflect actual figures. Results are not guaranteed and may vary based on individual circumstances. Always consult a qualified financial advisor before making any financial decisions.