Enter your loan amount, interest rate and term to see the monthly payment, total interest, and a year-by-year amortization schedule.
Monthly payment
—
Total interest—
Total paid—
Payoff time—
Interest saved (extra)—
Yearly schedule
Year
Principal
Interest
Balance
Estimates only. CalcPenny is not a lender, broker or financial adviser and this
is not financial advice. Verify figures before making decisions.
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How loan repayment works
A fixed-rate loan is repaid with equal monthly payments. Each payment covers the
interest charged that month first; whatever is left reduces the balance (the principal).
Because the balance shrinks over time, the interest portion falls and the principal
portion grows with every payment — even though the total payment stays the same. This
process is called amortization.
The single biggest lever on what a loan costs is the term. A longer
term lowers the monthly payment but means more payments and far more total interest.
A shorter term costs more each month but dramatically less overall. Try changing the
term above and watch the "Total interest" figure move.
The fastest way to pay less
Add anything to the extra monthly payment field. Because that money goes
100% to principal, it removes future interest on the entire remaining balance. A small,
consistent extra payment often shaves years off a loan — the "Interest saved" figure
shows exactly how much.
Frequently asked questions
How is the monthly loan payment calculated?
It uses the standard amortization formula: M = P · r · (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12). When the rate is 0%, the payment is simply the amount divided by the number of months.
What is an amortization schedule?
It is a month-by-month (here summarised by year) breakdown showing how each payment splits between interest and principal, and how the balance falls over time. Early payments are mostly interest; later payments are mostly principal.
Does paying extra each month help?
Yes — any amount above the required payment goes straight to principal, which reduces the balance the interest is charged on, so you pay less interest and finish earlier. Even small extra payments compound into large savings over a long term.
Is this an EMI calculator?
Yes. "EMI" (Equated Monthly Instalment) is the same fixed monthly payment this tool computes — common terminology in India and South Asia.
Are taxes and insurance included?
No. This calculates principal and interest only. For a home loan, add property tax, insurance and any HOA fees separately, or use the Mortgage Affordability calculator.