Balance over the life of the loan
Early payments are mostly interest, so the balance falls slowly at first and accelerates near the end.
Where your total repayment goes
Over 360 months you repay $821,426 on a $350,000 loan.
Payment details
About the loan calculator
Every loan payment is split between interest (the cost of borrowing) and principal (paying down what you owe). Early on, most of your payment goes to interest; over time the balance tips toward principal. This calculator shows your monthly payment, the total interest you will pay, and how the balance falls year by year.
Use it for mortgages, auto loans, personal loans or student loans — anything with a fixed rate and term. Seeing the total interest often reveals how much a lower rate or shorter term can save you.
Frequently asked questions
How is a monthly loan payment calculated?
It uses the amortization formula, which spreads the loan plus interest evenly across every month of the term. The payment depends on three things: the loan amount, the interest rate, and the number of payments. This calculator applies that formula instantly.
What is amortization?
Amortization is the process of paying off a loan with regular equal payments. Each payment covers the interest due plus a portion of the principal. As the balance shrinks, less of each payment goes to interest and more to principal.
How can I pay less interest on a loan?
Choose a shorter term, secure a lower interest rate, make a larger down payment, or pay extra toward the principal. Even small extra principal payments early in the loan can save a large amount of interest over time.
Does a longer loan term mean a cheaper loan?
No. A longer term lowers the monthly payment but increases the total interest you pay, because you borrow the money for longer. A shorter term costs more per month but far less overall.