Free calculator

Loan Calculator

Estimate monthly loan payments, total interest and repayment time, then see how recurring extra payments could reduce your costs.

This estimate runs in your browser. CorelyUp does not receive or store your loan values. Results are estimates, not financial advice or a lender quote.

How to use this tool

Calculate a fixed-rate amortization schedule and compare the effect of recurring extra principal payments.

Transparent method

Formula and method

Payment = principal × monthly rate ÷ (1 − (1 + monthly rate)^−payments). At 0%, payment = principal ÷ payments.

Example

$20,000 at 6% for five years is about $386.66 per month before fees; an extra monthly payment can shorten the payoff.

Assumptions and limits

The rate is fixed for the full term.
Currency selection changes display formatting only and performs no foreign-exchange conversion.
APR, origination fees, late payments, insurance, taxes and lender-specific terms are excluded.
Lenders may apply extra payments differently or charge prepayment penalties.

How loan payments are calculated

A fixed-rate amortized loan spreads principal and interest across equal scheduled monthly payments. Early payments contain more interest because the outstanding balance is higher; later payments contain more principal.

Interest rate versus APR

The interest rate controls the payment formula. APR may include eligible lender fees as well as interest, so it can be higher. Use the nominal annual interest rate here and compare official lender disclosures separately.

How extra payments affect payoff

A recurring extra amount applied directly to principal reduces the balance sooner. That can lower future interest and shorten the number of payments, but actual savings depend on lender rules and any prepayment charge.

Understanding the amortization schedule

The yearly table summarizes principal, interest, extra payments and ending balance. The monthly table shows the first 12 payments by default and can expand to the complete estimated schedule.

Principal, interest, rate and term

Principal is the amount borrowed. Interest is the cost charged on the outstanding principal. A higher rate usually increases both the monthly payment and total interest; a longer term can lower the monthly payment but usually raises total interest.

Verified loan examples

Standard loan: $20,000 at 6% for 60 months produces a scheduled payment of $386.66, about $3,199.36 in interest and $23,199.36 total repayment.

Zero-interest loan: $1,200 at 0% for 12 months produces 12 payments of $100 and no interest.

Extra-payment example: adding $100 per month to the $20,000 five-year example repays it in 47 payments and reduces estimated interest to about $2,444.38, saving about $754.98.

Term comparison: the same $20,000 at 6% over 36 months costs about $608.44 per month and $1,903.79 interest, compared with $386.66 per month and $3,199.36 interest over 60 months.

Suitable uses and common mistakes

Use this calculator for generic fixed-rate personal, auto and installment-loan estimates. It does not model revolving credit, variable rates, balloon payments, interest-only loans or mortgage taxes and insurance.

Common mistakes include entering 6 instead of 0.06 into a formula that expects a decimal, confusing APR with the interest rate, omitting fees, assuming every lender applies extra payments immediately to principal and comparing loans only by monthly payment.

Frequently asked questions

What happens at 0% interest?

The amount is divided evenly across the selected months.

Does this calculator use APR or interest rate?

Use the nominal annual interest rate. APR can include lender fees that this calculator does not model.

How is a fixed loan payment calculated?

It uses principal, the monthly interest rate and the number of monthly payments in the standard amortization formula.

What is amortization?

Amortization is the gradual repayment of principal and interest through scheduled payments until the balance reaches zero.

Can I use this for an auto or personal loan?

Yes, for a generic fixed-rate installment estimate. Compare the result with the lender's official APR, fees and payment terms.

Can I enter a loan term in months?

Yes. Choose months or years. The selected term must convert to a whole number between 1 and 1,200 months.

What does an extra monthly payment do?

It models an additional amount applied to principal each month, showing estimated payments and interest saved.

Does choosing GBP or CAD convert the loan?

No. USD, GBP and CAD change display formatting only; the calculator performs no exchange-rate conversion.

Are fees and prepayment penalties included?

No. Origination fees, insurance, taxes, late charges and lender-specific prepayment penalties are excluded.

Why can the final payment differ slightly?

The final payment is capped at the remaining principal plus interest so the estimated balance reaches exactly zero.