HesapHanem

Loan Calculator

See your monthly payment, total interest and amortization schedule in seconds.

Result

$9,455.96
$113,471.52
$13,471.52

Amortization Schedule

Month Payment Principal Interest Balance
1$9,455.96$7,455.96$2,000.00$92,544.04
2$9,455.96$7,605.08$1,850.88$84,938.96
3$9,455.96$7,757.18$1,698.78$77,181.78
4$9,455.96$7,912.32$1,543.64$69,269.46
5$9,455.96$8,070.57$1,385.39$61,198.89
6$9,455.96$8,231.98$1,223.98$52,966.90
7$9,455.96$8,396.62$1,059.34$44,570.28
8$9,455.96$8,564.55$891.41$36,005.73
9$9,455.96$8,735.85$720.11$27,269.88
10$9,455.96$8,910.56$545.40$18,359.32
11$9,455.96$9,088.77$367.19$9,270.55
12$9,455.96$9,270.55$185.41$0.00

How it is calculated

The tool uses the fixed-payment annuity formula: M = P × r × (1 + r)n / ((1 + r)n − 1), where P is the loan amount, r is the monthly interest rate as a decimal (2% becomes 0.02) and n is the number of monthly payments. If the rate is 0, the payment is simply P / n. Total payment is M × n and total interest is that total minus P.

The schedule then runs month by month: interest = balance × r, principal = payment − interest, and the new balance is the old balance minus the principal. The term is rounded down to a whole number of months. The rate is taken as monthly unless you set it to per year, in which case it is divided by 12.

Worked example

Borrow 100,000 at 2% per month for 12 months. Here r = 0.02 and (1.02)12 ≈ 1.2682, so the payment is 100,000 × 0.02 × 1.2682 / 0.2682 = $9,455.96 per month. Over 12 payments you pay $113,471.52 in total, of which $13,471.52 is interest. In month 1 the interest is 100,000 × 0.02 = $2,000.00, so only $7,455.96 of your first payment reduces the balance.

Try this example →

Common mistakes

  • Leaving the rate set to per month when you type an annual rate. A 24% yearly rate typed as monthly overstates the payment wildly, so set it to per year.
  • Entering the term in years instead of months; a 5-year loan is 60, not 5.
  • Expecting the result to include fees, insurance or tax charges, which many lenders add on top of the plain interest payment.
  • Assuming a quoted flat rate equals this declining-balance calculation; flat-rate loans charge interest on the original amount and cost more.

Sources

About this calculator

This tool works out the fixed periodic payment needed to pay off a borrowed amount over a set term at a given interest rate, using standard amortization math. Each payment is split between interest, which is charged on the remaining balance, and principal, which actually reduces what is owed, so the mix shifts from mostly interest early on to mostly principal near the end.

It is commonly used by anyone weighing a personal loan, car loan, or similar installment debt before signing, since it turns a rate and term into a concrete monthly figure and a total interest cost. Shoppers comparing two loan offers with different rates or lengths often run both through the calculator side by side to see which one actually costs less over time.

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Comments (1)

  • Editorial team

    Check the rate setting before you trust the payment: the rate can be per month or per year, and the term is in months. A lender quoting 12% a year needs 12 with the setting on per year, or about 1 on per month. The schedule below the result shows how the first payments are mostly interest, which is why paying extra early saves the most. Fees and insurance are not included. If the payment differs from your bank's offer, post your amount, rate and term.

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