How this calculator works
This calculator computes the fixed monthly payment and shows a first-year amortization schedule breaking each payment into interest and principal. Enter the loan amount, annual interest rate, and loan term to see the monthly payment and how the balance decreases over time. Use it when you want to understand how loans work, compare loan terms, or see the early payment structure. The key inputs are loan amount, annual interest rate, and term in years. The output is the monthly payment and the first-year schedule showing interest and principal portions. Real-world applications include mortgage planning, loan comparison, and financial education. The calculator computes the fixed monthly payment, then builds a first-year schedule by applying monthly interest to the remaining balance. It shows the first 12 months only, which keeps the page fast while showing how amortization begins. Extra payments are not modeled and would reduce the balance faster than shown.