Use our Loan Calculator to estimate your payment amount, total interest, and payoff date. Whether you are financing a car, consolidating debt, or planning a mortgage, this tool helps you understand costs and explore how extra payments can save time and money.
What the Loan Calculator Does
Our Loan Calculator breaks down your loan into clear numbers you can act on. Enter your loan amount, APR, term, and payment frequency to instantly see your regular payment. Add optional extra payments to see how quickly you can pay down the balance and how much interest you could avoid over the life of the loan.
- Calculates regular payments based on your APR, term, and payment frequency
- Shows the impact of extra payments on payoff time
- Estimates total interest paid
- Provides an expected payoff date when a start date is provided
How to Use the Loan Calculator
- Enter the total amount you plan to borrow.
- Type your APR as a percentage (for example, 6.5 for 6.5%).
- Set the term in years. You can enter decimals like 15.5 years.
- Choose your payment frequency: monthly, bi-weekly, or weekly.
- Optionally, add an extra payment per period to see savings and an earlier payoff.
- Optionally, add a start date to estimate a calendar payoff date.
Understanding the Math
The calculator uses the standard amortization formula for installment loans. Your APR is converted to a periodic rate based on your selected frequency. For example, a monthly schedule divides the APR by 12; bi-weekly divides by 26, and weekly by 52. When interest is greater than zero, the payment is computed with the standard formula so that each payment covers interest first and then reduces principal. If your APR is 0%, the payment simply becomes the principal divided evenly across all periods.
Extra payments are applied directly to principal after the interest portion of a payment is covered. This reduces the remaining balance faster, which cuts total interest and shortens the loan term. The calculator simulates this period by period to estimate the new number of payments and the payoff date.
Why Extra Payments Matter
Even small extra payments can make a meaningful difference. Because interest accrues on the remaining balance, reducing that balance early means your future interest charges shrink. Over the life of a long-term loan—like a mortgage—an extra payment of even $25 to $100 per period can shave years off your term and save thousands in interest.
- Pay less interest overall
- Shorten your payoff time
- Build equity faster on secured loans
- Gain financial flexibility sooner
Tips for Accurate Results
Use the nominal APR from your lender to match payment schedules accurately. If your loan includes fees or changing rates, results are estimates. For bi-weekly payments, note that our calculator uses 26 periods per year (every two weeks). Weekly payments use 52 periods per year. If you already have a specific payment amount from your lender, you can compare it with our calculated payment to check for differences due to rounding or escrow items not included here.
Plan Your Payoff Strategy
Once you see your baseline payment, experiment with extra payments. Try adding $25, $50, or $100 per period to visualize your potential savings and new payoff date. If you provide a start date, the calculator will estimate the calendar date when you’ll make your final payment based on your chosen frequency. This projection can help you plan major milestones, budget changes, or future investments.
Use the Loan Calculator as a guide for smarter borrowing and faster freedom from debt. When you understand how each number affects your long-term cost, you can make confident, informed decisions about your loan.