Loan Calculator

This calculator applies standard amortization to any fixed-rate loan — personal, auto, home equity, or otherwise — to find your monthly payment, total interest, and full payoff schedule, and shows exactly how much an extra monthly payment saves.

For personal planning only — not financial advice.

Reviewed by CalculatorDrive Finance Editorial Board · Last updated

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Enter your loan amount, interest rate, and term (and optional extra payment), then click Calculate to see your monthly payment, total interest, payoff date, payment breakdown and balance charts, and the full amortization schedule.

The short answer

A $200,000 loan at 6.5% over 30 years costs $1,264.14 a month and $255,088.98 in total interest — more than the loan itself. Add just $200 extra each month and the loan is paid off in 250 months (about 20.8 years) instead of 360, cutting total interest to $165,012.20 and saving $90,076.78.

Key takeaways

  • $200,000 at 6.5% over 30 years: $1,264.14/month, $255,088.98 in total interest — more than the principal borrowed.
  • $200/month extra pays the loan off 110 months (9.2 years) sooner and saves $90,076.78 in interest.
  • This calculator works for any fixed-rate installment loan — personal, auto, home equity — as long as payments are level and the rate doesn't change.
  • Every extra dollar paid goes straight to principal, so it starts saving interest from that payment forward, not just at the end of the loan.

How the monthly payment is calculated

Payment = P × [r(1+r)^n] / [(1+r)^n − 1]

$200,000 at 6.5%/12 monthly rate, 360 months = $1,264.14

This standard amortization formula produces a level payment for the entire term — but the mix inside that payment shifts constantly. Early on, most of the $1,264.14 covers interest on the large remaining balance; by the final years, most of it reduces principal, because the balance (and therefore the interest charged on it) has shrunk substantially.

What $200 extra a month actually does

Applying $200 above the required $1,264.14 payment on the same $200,000, 6.5% loan changes both the timeline and the total cost:

Standard +$200/month
Payoff time360 months250 months
Total interest$255,088.98$165,012.20

Every extra dollar skips straight past interest and reduces the balance immediately, which means next month's interest charge is calculated on a smaller number too — a compounding effect in your favor. That's why $200 a month (about $72,000 paid in over 9.2 fewer years of payments) saves $90,076.78, more than the extra payments themselves.

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Frequently Asked Questions

How is a fixed-rate loan payment calculated?

Fixed-rate loans use standard amortization: each payment covers interest on the remaining balance plus a portion of principal. On a $200,000 loan at 6.5% over 30 years, the monthly payment is $1,264.14 — early payments are mostly interest; later payments apply more to principal.

What is the difference between interest rate and total interest paid?

The interest rate (6.5% in this example) is the annual cost of borrowing. Total interest paid is the cumulative dollar amount over the full term — on the $200,000, 30-year loan, that comes to $255,088.98, more than the original loan amount, purely from stretching repayment over three decades.

Do extra monthly payments reduce total interest?

Yes, substantially. Adding $200 a month to the $200,000, 6.5%, 30-year loan above pays it off in 250 months (about 20.8 years) instead of 360 — 110 months earlier — and cuts total interest from $255,088.98 to $165,012.20, a savings of $90,076.78.

Are these results guaranteed by a lender?

No. Actual loan terms depend on your credit profile, lender fees, and underwriting. Use this tool for planning and comparison — consult a lender or financial advisor before borrowing.

What loan types does this calculator work for?

This calculator applies to any fixed-rate installment loan — personal loans, auto loans, home equity loans, and similar products — as long as payments are level and the rate is fixed for the term.

How do I use this loan calculator?

Enter loan amount, annual interest rate, and loan term in years or months. Optionally add an extra monthly payment, then click Calculate to see your payment, total interest, and full amortization schedule.

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