Loan Calculator
Figure out your monthly loan payment and see how much you'll actually pay over time. Includes total interest and payment schedules.
Loan Details
Loan Payment Summary
Monthly Payment
$1419.47
For 30 years
Total Principal
$250,000
Original loan amount
Total Interest
$261,009.2
Additional cost of loan
Total Payment
$511,009.2
Principal + Interest
Payment Breakdown
Loan Balance Over Time
Loan Details
| Term | Interest Rate | Loan Amount | Total Interest |
|---|---|---|---|
| 30 years | 5.50% | $250,000 | $261,009.2 |
How Loan Payments Work
Your monthly payment depends on how much you borrow (principal), the interest rate, and how long you take to pay it back. Most loans are amortized, which means you pay the same amount each month, but the split between principal and interest changes over time.
Early in the loan, most of your payment goes to interest. By the end, most goes to principal. This is why making extra payments early can save you so much—you're cutting into the expensive interest-heavy part of the loan.
Interest Rates Matter—A Lot
Even a 1% difference in your interest rate can cost (or save) you tens of thousands of dollars. Here's an example with a $250,000 loan over 30 years:
- At 4%: $1,194/month → $179,674 in total interest
- At 5%: $1,342/month → $233,139 in total interest
- At 6%: $1,499/month → $289,595 in total interest
That 2% difference between 4% and 6%? That's $109,921 more you'd pay in interest.
Short Term vs. Long Term
Choosing how long to take to pay off a loan is a trade-off between monthly payment size and total interest paid.
Shorter Term (e.g., 15 years)
Higher monthly payments, but you'll pay way less in total interest and be debt-free faster. Usually gets you a lower interest rate too. Good if your budget can handle it.
Longer Term (e.g., 30 years)
Lower monthly payments give you more breathing room, but you'll pay substantially more in interest over time. Better if you need flexibility or have a tight budget.
Ways to Save on Your Loan
Make extra payments when you can: Even an extra $100 a month toward principal can save you tens of thousands in interest and knock years off your loan. Just make sure there's no prepayment penalty.
Improve your credit first: If you can wait a few months to apply, use that time to boost your credit score. Even a 50-point improvement can lower your interest rate enough to save you thousands over the loan term.
Shop around: Don't take the first offer. Get quotes from at least 3 different lenders (banks, credit unions, online lenders) and use the best offer to negotiate. Compare APRs, not just interest rates.
Consider bi-weekly payments: Paying half your monthly payment every two weeks means you'll make 13 full payments per year instead of 12. That extra payment can cut years off your loan.
Refinance if rates drop: If interest rates fall by at least 0.5-1%, refinancing might make sense. Just calculate your break-even point (refinancing costs ÷ monthly savings) to make sure you'll keep the loan long enough for it to pay off.
Common Questions
Should I get a fixed or variable interest rate?
Fixed rates stay the same for the life of the loan—no surprises. Variable rates usually start lower but can go up (or down) over time. If you plan to keep the loan for a while and like predictability, go fixed. If you're paying it off quickly or think rates might drop, variable could save you money.
How much should I put down as a down payment?
For a house, 20% down helps you avoid PMI (extra insurance) and usually gets you a better rate. For a car, 20% down keeps you from owing more than the car's worth. But don't drain your emergency fund to hit these numbers—having cash on hand matters too.
How does compound interest affect my loan?
Most loans use simple interest, not compound. That means interest is only charged on what you still owe, not on interest itself. The exception: if you miss payments, some lenders add that unpaid interest to your balance, which then starts accruing its own interest. Always make at least the minimum payment to avoid this.
Is it better to pay off my loan early?
For high-interest loans, yes—you'll save a lot on interest and free up cash flow. For low-interest loans (like a 3% mortgage), it's less clear-cut. You might do better investing extra money elsewhere. Check for prepayment penalties first, and consider your whole financial picture.
How important is my credit score for getting a loan?
Very important. A good credit score (670-739) vs. an excellent one (740+) can mean a difference of 0.5% or more on your interest rate. On a big loan like a mortgage, that's tens of thousands of dollars over the life of the loan. Spending a few months improving your score before applying is usually worth it.
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