Loan Calculator

Calculate monthly payments, total interest, and see a full amortization schedule.

Monthly Payment
Total Interest
Total Payment
PrincipalInterest
📊 Amortization Schedule
#DatePaymentPrincipalInterestBalance

Free Loan Payment Calculator

The Toolts Loan Calculator computes your monthly payment, total interest paid, and total cost of a loan. Enter the loan amount, annual interest rate, and term in years to see instant results. Click "Amortization Schedule" to see a month-by-month breakdown showing how each payment is split between principal and interest.

How Loan Payments Are Calculated

This calculator uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n – 1], where M is the monthly payment, P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments. Early payments go mostly toward interest, while later payments go mostly toward principal.

Tips for Borrowers

Even small differences in interest rates significantly affect total cost. A $25,000 loan at 6.5% over 5 years costs $4,348 in interest, but at 8% the interest jumps to $5,666 — over $1,300 more. Making extra payments toward principal can dramatically reduce both the loan term and total interest paid.

Frequently Asked Questions

Amortization is the process of paying off a loan in equal installments over time. Each payment covers both interest and principal. In the early months, a larger portion goes to interest. Over time, the interest portion decreases and more goes toward paying down the principal balance.