Loan Payment Calculator 

Understanding Your Fixed-Rate Loan Calculator

This program performs intricate time-value-of-money calculations to provide an accurate financial analysis for any fixed-rate loan. In theory, it uses the standard loan amortization formula:

In this formula, the monthly payment is denoted by M, the principal loan amount by P, the monthly interest rate by i (your annual rate divided by 12), and the total number of monthly payments by n (the loan term in years multiplied by 12). These data are processed by the calculator, which promptly calculates your fixed monthly obligation.

In addition to the monthly payment, the tool determines the overall cost of borrowing over the life of the loan. The total amount paid is calculated by adding all monthly installments, and the total interest paid is determined by subtracting the original principal. It also creates a scrollable, dynamic amortization schedule. Technically speaking, this schedule breaks down each individual payment, showing the precise amount that goes toward principal reduction versus interest expense, as well as the remaining loan balance at the end of each month.

How to Use: Enter the total loan amount, the loan term in years, and the annual interest rate (as a percentage). Select “Calculate.” Your monthly payment and total interest will be shown immediately in the results section, and for complete financial transparency, the table below displays the full amortization breakdown for each payment.