The Amortized Loan Calculator helps you determine your monthly payment, total interest, and full repayment schedule. Adjust the loan amount, interest rate, and loan term to see how payments are structured over time.
- Loan Amount (P): The total amount borrowed.
- Annual Interest Rate (r): The yearly interest rate applied to the loan (converted to monthly interest for calculations).
- Loan Term (n): The total number of months for loan repayment.
- Monthly Payment (M):The fixed amount to be paid each month, calculated using the amortization formula:
M = (P × r) / (1 - (1 + r)-n)
- Total Payments: The total amount paid over the entire loan term:
Total Payments = M × n
- Total Interest Paid: The total interest accrued over the loan term:
Total Interest = Total Payments - P
- Amortization Schedule:Each payment is divided into principal and interest. The principal balance decreases over time, following this breakdown:
Interest Payment = Remaining Balance × r
Principal Payment = M - Interest Payment
Remaining Balance = Previous Balance - Principal Payment