Calculate mortgage payments, auto loans, and personal loans with detailed amortization schedules. Compare loan options and find the best rates for your financial situation.
Calculate loan payments, compare options, and visualize your amortization schedule with our comprehensive loan analysis tools.
Home loans with typical 15-30 year terms
Extra payments go directly toward principal and can significantly reduce total interest paid.
Loan Amount
$240,000
Loan-to-Value Ratio
80.0%
Down Payment
$60,000
"A penny saved is a penny earned." - Benjamin Franklin
Loans are one of the most common financial tools, yet many people don't fully understand how they work. Whether you're buying a home, financing a car, or consolidating debt, understanding loan calculations can save you thousands of dollars in interest and help you make smarter borrowing decisions.
This calculator helps you understand the true cost of borrowing by showing you monthly payments, total interest paid, and amortization schedules. You can compare different loan scenarios, see the impact of extra payments, and determine which loan terms work best for your budget.
The key to smart borrowing is understanding not just your monthly payment, but the total cost of the loan over its lifetime. A lower monthly payment might seem attractive, but it could mean paying significantly more in interest over time.
The total amount you're borrowing. For mortgages, this is the home price minus your down payment. For auto loans, it's the car price minus any trade-in or down payment. For personal loans, it's the amount you need to borrow.
The annual percentage rate you'll pay on the loan. This is the cost of borrowing money. Even a 1% difference in interest rate can mean tens of thousands of dollars over a 30-year mortgage. Shop around and negotiate for the best rate possible.
How long you'll take to repay the loan. Common terms: 15 or 30 years for mortgages, 3-7 years for auto loans, 2-5 years for personal loans. Longer terms mean lower monthly payments but much more interest paid over time.
Additional payments beyond your required monthly payment. Even small extra payments can dramatically reduce your total interest and pay off your loan years earlier. For example, paying an extra $100/month on a $300,000 mortgage can save you $50,000+ in interest.
For most people, a mortgage is the largest loan they'll ever take. Understanding mortgage calculations is crucial because small differences in rates or terms can mean hundreds of thousands of dollars over the life of the loan.
$300,000 Mortgage at 6.5% Interest
30-Year Mortgage:
Monthly Payment: $1,896
Total Interest Paid: $382,633
Total Cost: $682,633
15-Year Mortgage:
Monthly Payment: $2,613
Total Interest Paid: $170,351
Total Cost: $470,351
Difference: Save $212,282 in interest with 15-year term!
Trade-off: $717/month higher payment
The 15-year mortgage saves you over $200,000 in interest, but requires a higher monthly payment. If you can afford the higher payment, it's one of the best financial decisions you can make. If not, consider a 30-year mortgage but make extra payments when possible.
Car dealerships love to focus on monthly payments because it distracts from the total cost. A $500/month payment sounds reasonable, but over 7 years at high interest, you could pay $42,000 for a $30,000 car.
Personal loans can be useful tools for debt consolidation, emergency expenses, or major purchases. However, they often come with higher interest rates than secured loans like mortgages or auto loans.
Making extra payments is one of the most powerful ways to save money on loans. Here's how much you can save with different extra payment strategies:
| Loan Scenario | Extra Payment | Time Saved | Interest Saved |
|---|---|---|---|
| $300k Mortgage, 30yr, 6.5% | $100/month | 4.5 years | $52,000 |
| $300k Mortgage, 30yr, 6.5% | $200/month | 7.5 years | $88,000 |
| $300k Mortgage, 30yr, 6.5% | $500/month | 12 years | $145,000 |
| $30k Auto Loan, 5yr, 7% | $50/month | 8 months | $800 |
Instead of making one extra payment per year, divide it by 12 and add it to your monthly payment. This is easier to budget and has the same effect.
Example: $1,896 monthly mortgage + $158 extra (1/12 of annual payment) = Pay off 4+ years early and save $50,000+ in interest.
Refinancing means replacing your current loan with a new one, typically to get a lower interest rate or better terms. But refinancing isn't always a good idea—you need to consider closing costs and how long you'll keep the loan.
Formula: Closing Costs ÷ Monthly Savings = Months to Break Even
Example: $3,000 closing costs ÷ $150/month savings = 20 months to break even. If you'll stay in the home for 2+ years, refinancing makes sense.
Dealers and lenders love to stretch loan terms to lower monthly payments. But you'll pay far more in interest. Always look at total cost, not just monthly payment.
Different lenders offer different rates. Get quotes from at least 3-5 lenders. A 0.5% rate difference on a $300,000 mortgage saves you $35,000+ over 30 years.
Just because you're approved for $400,000 doesn't mean you should borrow that much. Lenders qualify you at the maximum, not what's comfortable for your budget.
Your credit score dramatically affects your interest rate. A 100-point score difference can mean $50,000+ more in interest over a mortgage. Fix credit issues before applying.
Read the loan documents carefully. Look for prepayment penalties, balloon payments, adjustable rates, and hidden fees. If something seems unclear, ask questions or walk away.
As of 2025, good mortgage rates range from 6-7% for 30-year fixed loans with excellent credit. Rates vary based on credit score, down payment, loan type, and market conditions. Shop around and compare at least 3-5 lenders.
It depends on your mortgage rate and investment returns. If your mortgage rate is 6.5% and you can earn 8-10% investing, investing wins mathematically. However, paying off your mortgage provides guaranteed returns and peace of mind. Many people do both: invest in retirement accounts while making some extra mortgage payments.
Financial experts recommend keeping total car expenses (payment, insurance, gas, maintenance) under 15-20% of your take-home pay. For the loan specifically, aim for a monthly payment no more than 10% of take-home pay. If you earn $4,000/month after taxes, that's a $400/month maximum car payment.
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus other costs like origination fees, points, and closing costs. APR gives you a more accurate picture of the total cost of the loan. Always compare APRs, not just interest rates.
Most loans allow early payoff, but some have prepayment penalties. Always check your loan documents before signing. Mortgages and auto loans typically don't have prepayment penalties, but some personal loans do. If a lender charges prepayment penalties, consider it a red flag.
Loans use compound interest, meaning you pay interest on both the principal and accumulated interest. Understanding how loans work helps you save thousands in interest and make smarter borrowing decisions.
Payment = P × [r(1+r)^n] / [(1+r)^n - 1]
Early payments go mostly toward interest, while later payments pay down more principal. This is why extra payments early in the loan save the most money.
Typical Terms: 15-30 years | Rates: 6-8% | Amount: $100,000-$1,000,000+
Secured by your home. Lower rates due to collateral. 30-year mortgages have lower monthly payments but cost more in total interest. 15-year mortgages save significantly on interest but require higher monthly payments.
Typical Terms: 3-7 years | Rates: 5-12% | Amount: $10,000-$80,000
Secured by the vehicle. Shorter terms mean higher payments but less interest. Avoid loans longer than 5 years - you'll likely owe more than the car's worth (underwater).
Typical Terms: 2-7 years | Rates: 8-36% | Amount: $1,000-$50,000
Unsecured (no collateral). Higher rates reflect increased lender risk. Good for debt consolidation if rate is lower than credit cards. Avoid for discretionary spending.
Typical Terms: 10-25 years | Rates: 4-8% | Amount: $5,000-$200,000+
Federal loans offer income-driven repayment and forgiveness options. Private loans have fewer protections. Consider total debt vs. expected salary before borrowing.
Even $50-100 extra per month can save thousands in interest and years off your loan. Specify "apply to principal" when making extra payments.
Pay half your monthly payment every two weeks. You'll make 13 full payments per year instead of 12, shaving years off your loan.
If rates drop 0.75%+ or your credit improves significantly, refinancing can save hundreds monthly. Factor in closing costs to ensure it's worth it.
15-year mortgages typically have rates 0.5-0.75% lower than 30-year. Higher payments but massive interest savings - often $100,000+.
A 100-point credit score increase can lower your rate by 1-2%, saving tens of thousands over the loan life. Pay bills on time and reduce credit utilization.
Dealers love this trick. A $30,000 car at 8% for 7 years costs $40,000 total. Focus on total cost and interest rate, not just monthly payment.
Zero down means higher payments, more interest, and immediate negative equity. Aim for 20% down on homes, 10-20% on cars.
A $300,000 mortgage at 7% for 30 years costs $418,000 in interest alone. Understanding this motivates extra payments and shorter terms.
Get quotes from at least 3-5 lenders. Rates can vary by 0.5-1%, which translates to thousands in savings. Don't accept the first offer.
Lenders prefer under 36%, with no more than 28% going to housing. Below 20% is excellent. Above 43% makes qualifying for mortgages difficult.
If your rate is above 5-6%, paying extra makes sense. Below that, investing the difference often yields better returns. Consider your risk tolerance and peace of mind.
Maximum: 28% of gross monthly income for housing costs (PITI - principal, interest, taxes, insurance). Comfortable: 20-25%. Don't forget maintenance, utilities, and repairs.
740+ gets best rates. 700-739 is good. 620-699 is fair with higher rates. Below 620 makes conventional loans difficult. FHA loans accept 580+ with 3.5% down.