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Loan Calculator
Category:
Math
Complexity:
Medium
Usage:
Medium
Calculate loan payments, interest, and generate amortization schedules
Loan Details
Payment Summary
Monthly Payment
$1,136.61
Total Interest
$209,202.72
Total Paid
$409,202.72
Principal
$200,000.00
Amortization Schedule
| Payment # | Payment Date | Beginning Balance | Monthly Payment | Principal | Interest | Ending Balance |
|---|
How Loan Calculations Work
Monthly Payment Formula
The monthly payment is calculated using the standard amortization formula:
M = P × [r(1+r)^n] / [(1+r)^n - 1]
- M = Monthly payment
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = Total number of payments (years × 12)
Amortization Schedule
The schedule breaks down each payment into principal and interest portions:
- Interest Payment: Remaining Balance × Monthly Interest Rate
- Principal Payment: Monthly Payment - Interest Payment
- Ending Balance: Beginning Balance - Principal Payment
Key Insights
- Early payments are mostly interest; later payments are mostly principal
- A larger down payment reduces the principal and total interest paid
- Lower interest rates significantly reduce total interest paid
- Shorter loan terms pay off faster but have higher monthly payments