General money tools
Loan payment calculator
Payment, total interest, and where the first payment actually goes.
A starting point, not tax advice. Nothing you type leaves your browser.
What this does not cover. General arithmetic only. It is not a quote, not an offer, and not advice about borrowing — lenders apply their own terms, fees and compounding conventions.
How this works
What the number means
This is the standard amortization formula: a level payment that covers interest on the balance and reduces the principal, sized so the balance reaches zero at the end of the term.
Early payments are mostly interest and late payments are mostly principal. Seeing how much of the first payment is interest is usually the most informative output here.
Paying more often reduces total interest slightly, because the balance falls sooner.
Worked example. $40,000 over five years at 7.5% is $801.52 a month, with $8,091 of interest across the term — and $250 of the very first payment is interest.
Sources
- Plain arithmetic. No published rate is involved.
Rates change. The CRA page is the authority, and these are reviewed every January.
Next step
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