Loan Payment Calculator
Compare monthly payments, total interest, and remaining balance across three repayment methods using the same loan terms.
This estimate divides the annual interest rate by 12 and assumes the same payment date each month. Currency selection changes display units only and does not convert exchange rates.
Loan Repayment Assumptions Versus the Lender's Schedule
Reference date and last reviewed: July 26, 2026
Calculation Basis
Applies the entered principal, constant annual rate, full term, grace period, and repayment method monthly. Equal total payment uses the standard amortization formula, equal principal uses a level scheduled principal amount, and bullet repayment uses monthly interest plus final principal.
Reference Limits
It does not determine variable-rate resets, exact funding and payment dates, lender rounding, prepayment penalties, origination, guarantee or insurance costs, late payments, or promotional-rate eligibility, so it cannot confirm actual payments or approval terms.
When to Confirm Officially
Before funding, refinancing, or prepaying a loan, review the lender's amortization schedule and product disclosure for the rate structure, total borrowing cost, prepayment fee, and allocation of extra payments to principal.
Usage Tips
Compare the repayment structure and prepayment terms, not just the rate
Equal total payments make budgeting predictable, equal-principal repayment starts higher but usually reduces total interest, and bullet repayment leaves a large final principal payment. Review rate changes, prepayment fees, payment dates, and other loan costs before deciding what monthly payment is affordable.
What is Loan Payment Calculator?
The Loan Payment Calculator estimates the first, maximum, and final monthly payment, total interest, total repayment, payoff time, and monthly balance from the loan principal, display currency, annual interest rate, term, grace period, repayment method, and extra monthly principal. Results can be displayed in major currencies including USD, KRW, EUR, GBP, JPY, CNY, CAD, AUD, SGD, and INR. Currency selection changes the unit and symbol without performing an exchange-rate conversion. It compares equal total payment, equal principal, and interest-only bullet structures under the same assumptions.
How to Use
- 1Enter the principal that will actually be funded and select the contract currency. Changing currency does not convert the amount, so enter principal in the selected unit.
- 2Enter the annual interest rate and the full loan term in months from the offer or disclosure. Treat a variable rate as a scenario using the currently entered rate.
- 3Choose equal total payment, equal principal, or interest-only bullet repayment. Each structure changes the first payment, payment pattern, and total interest.
- 4Enter any interest-only grace period. Bullet repayment already defers the remaining principal to maturity, so a separate grace period does not apply.
- 5Enter a recurring extra principal amount if you plan to prepay monthly. The estimate assumes immediate principal allocation without a fee.
- 6Review the first payment, maximum payment, total interest, total repayment, method comparison, and expanded monthly schedule before assessing affordability.
Evaluate both monthly payment and lifetime loan interest
Last reviewed: July 26, 2026Equal-payment amortization formula
Monthly payment M = P × r(1+r)^n ÷ ((1+r)^n - 1)
P is the principal when amortization begins, r is the annual rate divided by 12, and n is the number of repayment months remaining. At a 0% rate, principal is divided by the remaining months. Each month's interest is the opening balance times r, and the rest of the payment reduces principal.
A $100,000 loan at 6.5% for five years
- • $100,000 principal
- • 6.5% annual interest rate and 60-month term
- • Equal total payment with no grace or extra principal
- 1. Monthly rate = 6.5% ÷ 12 = about 0.5417%
- 2. Scheduled monthly payment is about $1,956.61
- 3. Total repayment about $117,396.89 - $100,000 principal
The estimated monthly payment is $1,956.61 and total interest over 60 months is $17,396.89.
How to read the result
- A longer term can make the monthly payment look more affordable while keeping principal outstanding and increasing lifetime interest.
- Extra-payment savings should be evaluated after any prepayment charge and under the lender's actual allocation rules.
Conditions that change the result
- The calculator does not model future variable-rate resets, step rates, exact-day accrual, or irregular payment dates.
- Origination charges, guarantees, insurance, taxes, late fees, and prepayment penalties are excluded from total repayment.
Common input mistakes
- Do not add the grace period on top of the full term; this calculator treats grace as part of the entered loan term.
- Do not assume every extra payment automatically reduces principal; confirm allocation instructions and fees with the lender.
Reference Knowledge
- ●Equal total payment amortization applies the monthly rate to the remaining balance and sets a level principal-and-interest payment over the months remaining after grace.
- ●Equal-principal repayment divides the balance by the remaining repayment months. Interest is charged on the opening balance, so the total payment generally declines over time.
- ●Bullet repayment charges interest on the outstanding balance and pays the remaining principal in the final month. Keeping principal outstanding longer can increase total interest.
- ●Extra payments are modeled as immediate principal reductions after the scheduled principal. A real contract may impose prepayment fees, minimums, or allocation instructions.
- ●The calculator converts the annual rate to a monthly rate by dividing by 12 and assumes evenly spaced monthly payments. Lenders may instead use exact days and their own rounding rules.
FAQ
Q.Which method usually produces less total interest?
With the same rate and term and no grace period, equal-principal repayment generally reduces principal sooner and therefore produces less total interest. Its initial monthly payment can be higher than an equal total payment.
Q.Why does a grace period increase total interest?
Scheduled principal is not reduced during grace, so a larger balance remains outstanding for longer. The loan may also require larger payments after grace to repay that balance by the original maturity.
Q.Will extra payments shorten my real loan by the same amount?
The estimate assumes each extra amount is applied immediately to principal without a prepayment fee. If a lender credits future installments or charges a fee, the actual payoff time and savings can differ.
Q.Can this calculator model a variable-rate loan?
It can show a single scenario where the entered rate remains constant. It does not predict future resets, so change the rate and compare multiple scenarios.
Q.Does total repayment include lender fees or insurance?
No. It includes principal and calculated interest only, not origination fees, guarantee fees, taxes, insurance, late charges, or prepayment penalties.
