What is an amortization schedule?

An amortization schedule shows the breakdown of each payment into principal and interest for every month of the loan. At the start, most of each payment goes toward interest. Over time, more goes toward principal. The schedule reveals the true cost of borrowing.

Fixed vs variable rate: which should I choose?

Fixed rates provide payment certainty for the entire loan term — ideal if you value predictability. Variable rates typically start lower and fluctuate with market rates (e.g., LIBOR or central bank rates). Choose fixed if rates are historically low or you plan to hold long-term; variable if rates are high and likely to fall.

How much does a 1% difference in interest rate matter?

On a $300,000 30-year mortgage: at 5%, monthly payment is $1,610 (total interest $279,767); at 6%, it is $1,799 (total interest $347,514). A 1% higher rate costs $67,747 more over the life of the loan. Small rate differences compound to very large amounts over long terms.

What is the debt-to-income ratio?

The debt-to-income (DTI) ratio is your total monthly debt payments divided by gross monthly income. Lenders typically require a DTI below 36-43%. For a $6,000/month gross income, total monthly debt payments should not exceed $2,160.

Loan Calculator

Calculate monthly payment, total interest and full amortization schedule for any loan or mortgage. Free, instant results.

🏠Loan Calculator

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About this calculator

The loan calculator uses the standard PMT formula to calculate your exact monthly payment for any loan: mortgage, car loan, personal loan, or student loan. Enter the loan amount, annual interest rate, and term in months to get instant results. The complete amortization schedule shows month-by-month how each payment is split between principal repayment and interest. In the early months, interest dominates; in later months, principal repayment accelerates. This schedule is essential for understanding the true cost of any loan. Use this calculator to: compare loan offers by their total cost, calculate the impact of a larger down payment, estimate how much extra monthly payment reduces your loan term, or determine the maximum loan you can afford given your target monthly payment.

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Frequently Asked Questions

The monthly payment uses the standard PMT formula: M = P × [r(1+r)^n] / [(1+r)^n−1], where P is the principal, r is the monthly rate (annual rate ÷ 12), and n is the total number of payments. This is the same formula used by banks worldwide.