Loan calculator
What a loan costs each month and in total, when it's paid off, and what paying extra saves.
Monthly payment
Over 5 years you’d pay $5,057 in interest on top of the $25,000 you borrow.
- Total interest
- $5,057
- Total paid
- $30,057
- Paid off
- November 2031
Balance over time
Early payments go mostly to interest; the balance falls faster near the end.
Today
$25,000
- Balance
Principal and interest by year
Each year more of the payment goes to the balance and less to interest.
Whole loan
- Principal$25,000
- Interest$5,057
Amortization schedule
| Year | Paid | Extra | Principal | Interest | Balance at year end |
|---|---|---|---|---|---|
| 2026 | $500.95 | – | $344.70 | $156.25 | $24,655.30 |
| 2027 | $6,011.40 | – | $4,308.35 | $1,703.05 | $20,346.95 |
| 2028 | $6,011.40 | – | $4,642.81 | $1,368.59 | $15,704.14 |
| 2029 | $6,011.40 | – | $5,003.25 | $1,008.15 | $10,700.89 |
| 2030 | $6,011.40 | – | $5,391.65 | $619.75 | $5,309.24 |
| 2031 | $5,510.41 | – | $5,309.24 | $201.17 | $0.00 |
How we calculate this
We use the standard formula for a fixed-rate installment loan: interest each month is the balance times the annual rate divided by 12, rounded to the cent, and the rest of the payment reduces the balance. The last payment is adjusted to clear what’s left.
Extra payments go entirely to principal in the month you choose, without changing the regular payment, so the loan ends sooner. Lenders apply extra payments in different ways; check yours applies them to principal.
Questions
- How is a loan payment calculated?
- A fixed-rate loan has a level payment: the amount that, with interest charged each month at the annual rate divided by 12, brings the balance to zero after the last payment. Early on most of each payment is interest; by the end it's almost all principal.
- Do extra payments really save money?
- Yes. Extra money goes straight to the principal, so every later month charges interest on a smaller balance. Even a small amount each month can take months or years off a long loan.
- Is a one-time extra payment better than extra each month?
- The earlier money reaches the balance, the more interest it saves. A lump sum early in a loan saves more than the same amount spread over later years. Try both above to compare.
- Why is the last payment different?
- Payments are rounded to the cent, so the final one is adjusted to clear exactly what's left.
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