How is monthly loan payment calculated?

The calculator uses the standard amortization formula based on principal, annual interest rate, and loan term.

Do extra payments reduce total interest?

Yes. Extra payments reduce principal faster, which lowers total interest and can shorten payoff time.

Yes. You can calculate and compare two scenarios side-by-side including monthly payment, total paid, and payoff date.

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Metric	Scenario A	Scenario B	Difference (B - A)

Showing Scenario A

Month	Payment	Principal	Interest	Extra	Balance

What is an amortization schedule?

An amortization schedule is a month-by-month table showing how each payment is split between principal and interest until the balance reaches zero.

How do extra payments help?

Extra payments reduce principal early, which lowers the interest charged in future months and often pays off the loan sooner.

Why compare two scenarios?

Comparison helps you evaluate different rates, terms, or extra payment plans to choose the most cost-effective loan strategy.

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