Personal Loan Calculator
Calculate your loan payments, view amortization schedule, and plan partial payments
Personal Loan Calculator with Amortization & Partial Payments
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Loan amortization is the process of paying off a debt over time through regular payments. A portion of each payment is for interest while the remaining amount is applied toward the principal balance.
The monthly payment for a fixed-rate loan is calculated using the formula:
M = P × [r(1+r)^n] / [(1+r)^n - 1]
Making partial payments can significantly reduce the total interest paid and shorten the loan term. Even a single extra payment can have a substantial impact on the overall cost of your loan.
What is an amortization schedule? An amortization schedule is a table showing each loan payment's allocation between principal and interest, and the remaining balance after each payment.
How do partial payments affect my loan? Partial payments reduce your principal balance faster, which means you'll pay less interest over the life of the loan and potentially pay off your loan earlier.
What's the difference between interest rate and APR? The interest rate is the cost of borrowing the principal loan amount. APR (Annual Percentage Rate) includes the interest rate plus other loan fees.
Should I make extra payments toward my loan? Making extra payments can save you money on interest and help you become debt-free faster. However, check if your loan has prepayment penalties.