Monthly payments
Loan Calculator – User Guide
Our Loan Calculator helps you estimate monthly payments, total interest, and (if you opt in to advanced settings) extras like origination fees, extra monthly payments, or a balloon payment at the end. It’s ideal for personal loans, auto loans, or any installment-based loan.
Basic Instructions
Loan Amount ($)
• Enter the principal you plan to borrow.
Annual Interest Rate (%)
• Example: 7%.
• Type the annual percentage rate offered by your lender.
• The tool converts this to a monthly rate to calculate payments.
Loan Term
• Input how many years (or months) you have to repay.
• The tool multiplies by 12 to get total monthly installments.
• Example: “5” for a five-year loan (60 months).
4. Click “Calculate” (or “Update”)
• The tool immediately calculates monthly payments and total interest.
• The results will appear in the right column (or below on mobile).
Advanced Options
Origination Fee ($ or %)
• If your lender charges a flat dollar amount (e.g., “$300”) or a percentage of the loan (e.g., “1.0%”), you can input either (or both, though typically you only fill one).
• This fee is not added to the principal in our default calculations (we assume you pay it upfront). If you want to incorporate it into the loan, consider adding it to “Loan Amount.”
Extra Monthly Payment ($)
• If you plan to pay more than the required monthly amount each month to reduce the loan faster, enter that here.
• The final monthly payment shown will reflect (base + extra).
• The “Approximate Total Interest” calculation also adjusts to reflect these extra payments.
Balloon Payment ($)
• If your loan has a balloon or lump sum payment at the end, input it here.
• This lumpsome is added to the final payment in the calculation.
Amortization Schedule
• Toggle “Show Amortization Schedule” to list each month’s Payment, Principal, Interest, and Remaining Balance.
• This table will also reflect extra monthly payments or a balloon if you entered those fields.
• Perfect for a detailed month-by-month breakdown.
Interpreting the Results
Monthly Payment
This is your estimated regular installment each month. If “Extra Monthly Payment” is specified, we add it to the base payment for a higher monthly outlay. If the balloon is used, the final month includes that lumpsum in addition to the regular payment.
Total Interest
The approximate total interest over the life of the loan—assuming you make all payments on time and no changes occur mid-loan. If you entered a balloon payment or extra monthly payments, we factor them into an approximate total interest paid.
Origination Fee
If you input a fee (dollar or percent), we list it in the results section. We assume it’s paid upfront rather than financed.
Balloon Payment
If used, displayed as a separate amount. It’s typically due in the final month. The amortization schedule adds that lumpsum to the last payment row.
Real-World Variations
• Actual lender calculations may differ if they compound interest differently, charge monthly fees, or have mid-loan changes. This tool is for estimation only.
Important Disclaimers
1. Estimates Only: The Loan Calculator’s outputs are for informational and educational purposes. Actual figures vary by lender, loan product, and individual credit profile.
2. No Guarantee: A displayed monthly payment or total interest does not guarantee you’ll qualify for those terms.
3. Fees & Rates: Some lenders include fees in the financed amount, which changes the principal and interest calculations. Our default approach assumes you pay the fee upfront unless you add it to “Loan Amount.”
4. Balloon Approximations: The final lumpsum is added in the last month’s row if you specify a balloon. Actual lender documents might structure that lumpsum differently or require special interest calculations.
5. Consult Professionals: For precise loan info, talk to a licensed lender or financial advisor. They can provide official loan estimates and disclosures.
Frequently Asked Questions (FAQ)
1. Is a balloon payment the same as a final payoff?
• A balloon payment is a partial lumpsum at the end. If it covers the entire remaining balance, it effectively finishes the loan. But some balloon loans might still have leftover interest or fees (check with your lender).
2. Do I have to pay the origination fee upfront, or can I roll it into the loan?
• This depends on your lender. Our tool assumes you pay it upfront. If you want it included in the loan, consider adding that amount into your “Loan Amount.”
3. Why is my monthly payment so high with an extra monthly payment?
• Because we simply add your extra amount to the standard payment, it’s displayed as one combined figure. The benefit is reduced overall interest, plus possibly paying off the loan faster.
4. Can I do interest-only or variable-rate loans with this tool?
• Currently, we focus on fixed-rate amortizing loans. For interest-only or ARMs, the math is more complex, and you’d need a specialized calculator.
5. Why does the final schedule row have a large jump if I added a balloon?
• That row includes your normal monthly payment plus the lumpsum balloon. This ensures the final payoff. If it looks too large, consider a smaller balloon or a different loan product.
Our Loan Calculator guides you through basic to advanced loan scenarios, helping you see how fees, extra payments, or balloon lumpsums shape your monthly obligations and total interest. Remember to use it as a reference point and to consult professional loan documents or advisors for official figures.
You may also be interested in our Mortgage Calculator