Loan Calculator
Calculate your exact monthly loan payment, total interest cost, and payoff timeline for personal loans, auto loans, and term financing with amortization.
Last verified: September 2026Inputs & Parameters
Calculation Results
Fixed monthly payment of $299.71 over 36 months ($789.52 total interest cost).
Amortization Schedule (Annual Summary)
| Year | Annual Payment | Principal | Interest | Ending Balance |
|---|---|---|---|---|
| 1 | $3,596.52 | $3,184.28 | $412.24 | $6,815.72 |
| 2 | $3,596.52 | $3,347.16 | $249.36 | $3,468.56 |
| 3 | $3,596.48 | $3,468.56 | $127.92 | $0.00 |
How Fixed-Rate Loan Amortization Works
Fixed-rate amortizing loans require identical periodic payments throughout the loan term. In the early payment cycles, the majority of each payment covers accrued interest. As the outstanding loan principal decreases, a larger portion of each payment is applied directly toward the principal balance.
Standard Amortization Formula
Monthly Payment M = P × [ r(1 + r)ⁿ ] / [ (1 + r)ⁿ - 1 ]
Where P = Principal amount, r = Monthly interest rate (Annual Rate / 12), and n = Total number of monthly installments.
Payoff Acceleration with Extra Monthly Payments
When you pay an additional amount above the standard monthly payment, 100% of that extra payment is allocated directly toward the principal balance. This reduces future interest accrual, creating a compounding savings effect that shortens your total loan duration.
Worked Example
For a $10,000 auto loan at 5.00% annual interest over a 3-year term (36 months):
Monthly payment = $299.71
Total interest paid over 3 years = $789.52
Total repayment amount = $10,000 + $789.52 = $10,789.52