What this tool tells you
A loan's monthly payment depends on the amount, the annual rate, and the term. This amortization calculator shows your monthly bill and the total interest you'll pay over the life of the loan.
How the math works
Enter the principal, annual interest rate, and term in months. The calculator applies the standard loan-payment formula and reports the monthly payment, total paid, and total interest.
Frequently asked questions
How is a loan monthly payment calculated?
Monthly payment = P × r(1+r)^n ÷ ((1+r)^n − 1), where P is principal, r is the monthly rate (annual ÷ 12), and n is the number of months.
Does a shorter term save money?
Yes. A shorter term raises the monthly payment but reduces total interest because you borrow the money for less time.