Loan Calculator

Q: Does this calculator include property taxes, insurance, or HOA fees?

No. It only shows principal and interest . For a full house payment, add property tax, home insurance, PMI, and HOA dues on top of the number shown.

Q: Can I use this for a car loan, personal loan, or student loan?

Yes. It works for any loan paid back in equal monthly payments — auto, personal, student, business, or mortgage.

Bank Of America Loan Calculator

Updated Aug 23, 2026 By Jehan Wadia

Introduction

This loan calculator shows you what a loan will really cost. Type in the loan amount, interest rate, and term. You get your monthly payment, total interest, total cost, and payoff date right away.

You can also compare two loans side by side. Put one loan in the Loan A box and another in the Loan B box. The tool shows which one costs less over time. For a dedicated side-by-side view, try our Loan Comparison Calculator.

Want to pay off your loan faster? Add an extra monthly payment. The calculator shows how much interest you save and how many months you cut off. Our Extra Payment Calculator and Loan Payoff Calculator dig deeper into early payoff math. It also checks your debt-to-income ratio against the 28% and 36% rules lenders use — see the DTI Calculator for a full breakdown.

You also get a full amortization schedule. It lists every payment, how much goes to principal, how much goes to interest, and your balance each month. Charts and a step-by-step math breakdown help you see exactly how the numbers work. For a stand-alone table, use the Amortization Calculator.

How to use our Loan Calculator

Enter your loan amount, interest rate, term, and any down payment or extra payment. The calculator shows your monthly payment, total interest, total loan cost, payoff date, a debt-to-income check, and a full amortization schedule. Fill in Loan B too if you want to compare two loans side by side.

Loan Amount: Type the full price or the amount you want to borrow. You can also drag the slider. The range is $1,000 to $100,000,000.

Annual Interest Rate (APR): Type the yearly rate your lender quotes, like 6.5. You can enter 0% up to 35%. Not sure what rate you qualify for? The APR Calculator and Loan Interest Rate Calculator can help.

Loan Term: Type how long you will pay, then pick Years or Months from the drop-down. The most you can enter is 30 years, or 360 months.

Down Payment: Type the cash you pay up front. This is optional. The calculator subtracts it from the loan amount to get the amount you finance. Use the Down Payment Calculator to plan how much to put down.

Extra Monthly Payment: Type any extra dollars you plan to add each month. This is optional, and it lowers your interest and shortens your payoff time.

Compound Frequency: Choose Monthly, Semi-Annually, or Annually. This is how often interest is added. Payments stay monthly either way. See the Compound Interest Calculator for how compounding builds over time.

Loan B fields: Fill in the same six boxes for a second loan. The results table then shows the difference between Loan A and Loan B.

Loan Start Date: Pick the month and year your loan begins. Your first payment is one month after this date.

Gross Monthly Income: Type your monthly pay before taxes. This is optional, and it checks your payment against the 28% front-end limit. The Monthly Income Calculator helps if your pay is hourly or biweekly.

Other Monthly Debt Payments: Type what you pay each month for cards, car loans, and student loans. This is optional, and it checks the 36% back-end limit. Our Debt Payoff Calculator can help you shrink these first.

Schedule for / View: Pick Loan A or Loan B, then choose Monthly or Annual to see how each payment splits between principal and interest.

Click Calculate to see your results, or Reset to start over.

What Is a Loan?

A loan is money you borrow now and pay back later, plus interest. Interest is the fee the lender charges for letting you use their money. Most loans — home mortgages, car loans, and personal loans — are paid back in equal monthly payments until the balance hits zero.

The Parts of a Loan

Loan amount: the full price or the total you borrow.
Down payment: cash you pay up front. It lowers how much you borrow.
Principal: the amount you actually finance (loan amount minus down payment).
Interest rate / APR: the yearly cost of borrowing. APR also folds in lender fees, so it is usually a bit higher than the plain rate.
Term: how long you have to pay it off, like 15 or 30 years.
Compounding: how often interest is added to the balance. Monthly is the most common.

How Monthly Payments Work

Each monthly payment is split into two parts: interest and principal. Early on, most of your money goes to interest because the balance is large. As the balance shrinks, more of each payment goes to principal. This slow shift is called amortization. The full list of every payment, split by interest and principal, is the amortization schedule. Our Loan Payment Calculator and Loan Interest Calculator focus on each piece separately.

Term Length Changes the Cost

A longer term means a smaller monthly payment but much more interest over the life of the loan. A shorter term costs more each month but saves a lot of interest. That is why a 15-year loan and a 30-year loan for the same amount can differ by tens of thousands of dollars in total cost.

Extra Payments Save Money

Paying extra each month goes straight to the principal. A smaller balance means less interest is charged next month, so you pay the loan off early and keep more of your money. Even $100 or $200 a month can cut years off a mortgage — see the Mortgage Extra Payment Calculator or the Early Mortgage Payoff Calculator. Switching to biweekly payments works much the same way. The break-even point is the month when the interest you avoided grows larger than the extra cash you have sent in.

The 28/36 Rule

Lenders check if you can afford the payment by comparing it to your income before taxes. The front-end ratio is your housing or loan payment divided by your gross monthly income; the common limit is 28%. The back-end ratio adds all your other debt — credit cards, car loans, student loans — and the common limit is 36%. Staying under both makes approval easier and leaves room in your budget. Check what price you can handle with the Home Affordability Calculator or plan your spending with the Budget Calculator.

Tips Before You Borrow

Compare offers using APR, not just the interest rate.
A bigger down payment lowers your payment and your total interest, and can help you skip PMI.
Look at total cost, not only the monthly payment.
Ask if the lender charges a fee for paying early.
A better credit score usually earns a lower rate — keeping your credit utilization low helps.
Already borrowing? Compare your current deal against a refinance or a debt consolidation loan.

Formulas used

Financed principal

L = \text{Loan Amount} - \text{Down Payment}

Effective annual rate from APR and compounding frequency

EAR = \left(1 + \frac{r}{n}\right)^{n} - 1

Equivalent monthly periodic rate

i = (1 + EAR)^{1/12} - 1

Number of scheduled monthly payments

N = \text{years} \times 12

Monthly payment (amortized; zero-rate case)

M = L \cdot \frac{i}{1 - (1+i)^{-N}}, \qquad M = \frac{L}{N} \text{ if } i = 0

Monthly amortization recursion (interest, principal, balance)

I_k = B_{k-1} \cdot i, \quad P_k = (M + E) - I_k, \quad B_k = B_{k-1} - P_k

Total interest and total cost of loan

\text{Interest} = \sum_{k=1}^{K} I_k, \qquad \text{Total Cost} = L + \sum_{k=1}^{K} I_k

Debt-to-income ratios (front-end and back-end)

\text{Front} = \frac{M + E}{\text{Income}} \times 100\%, \qquad \text{Back} = \frac{M + E + D}{\text{Income}} \times 100\%

Frequently asked questions

Does this calculator include property taxes, insurance, or HOA fees?

No. It only shows principal and interest. For a full house payment, add property tax, home insurance, PMI, and HOA dues on top of the number shown.

Why is my payment a little different from my lender's quote?

A few reasons:

Your lender may add escrow, fees, or insurance.
Some lenders round the payment up.
Fees rolled into the loan raise the amount financed.

The math here covers principal and interest only.

What is the effective annual rate shown in the results?

It is the real yearly cost once compounding is counted. A 6.5% APR compounded monthly works out to about 6.70% effective. It is always equal to or higher than the rate you typed.

Why isn't the monthly rate just the APR divided by 12?

Because compound frequency matters. This tool turns your yearly rate into an equivalent monthly rate. With monthly compounding the result matches APR ÷ 12. With semi-annual or annual compounding, the monthly rate comes out slightly different.

Can I use this for a car loan, personal loan, or student loan?

Yes. It works for any loan paid back in equal monthly payments — auto, personal, student, business, or mortgage.

Does it work for adjustable or variable rate loans?

No. It assumes one fixed rate for the whole term. If you have an ARM, run the numbers again at each new rate to see how the payment shifts.

Why is my first payment one month after the start date?

Interest builds for a full month before the first bill. So a loan that starts in September 2026 has its first payment in October 2026.

What happens if I enter a 0% interest rate?

The payment becomes the financed amount divided by the number of months. Total interest is $0, and total cost equals the principal.

Does the down payment lower my monthly payment?

Yes. It is taken off the loan amount first. You finance less, so your payment drops and you pay less interest over the whole term.

What does the break-even point mean?

It is the month when the interest you avoided grows bigger than all the extra cash you have sent in. After that month, every extra dollar is pure savings.

Why does my amortization table end before the last scheduled payment?

Extra payments push the balance to zero early. The green row with the checkered flag is your real final payment. The results card shows both counts, like "268 of 360."

What is the cumulative interest column?

It is the running total of all interest you have paid up to that row. The last row equals your total interest for the loan.

What is the difference between total interest and total cost?

Total interest is just the borrowing fee. Total cost is the financed principal plus that interest. Your down payment is listed on its own and is not part of total cost.

Why is Loan B blank in the comparison table?

One of the Loan B boxes has a bad value. Look for the red message under that field, fix it, and the compare table fills in right away.

Can Loan A and Loan B have different amounts and terms?

Yes. Each loan has its own amount, rate, term, down payment, extra payment, and compounding. That lets you test things like 15 years versus 30 years, or two different lenders.

Why is the term limited to 30 years?

Most consumer loans stop at 360 monthly payments. Longer terms are rare and pile on a lot of extra interest.

Does the calculator account for prepayment penalties?

No. Some lenders charge a fee if you pay off early. Ask before you start adding extra payments.

What does the annual view show?

It rolls every payment in a calendar year into one row: number of payments, total paid, principal, interest, and the balance at the end of that year. Good for a quick big-picture look.

Can I print or save my results?

Yes. Use your browser's print or save-as-PDF option. The input boxes and buttons drop off the page, so only your results, math steps, and full schedule print.

Is my income and debt information saved?

No. Every calculation runs inside your browser. Nothing you type is stored or sent anywhere.

My debt-to-income ratio is over the limit. What can I do?

Try one or more of these:

Borrow less or put more money down.
Pick a longer term to lower the payment.
Pay off a credit card or car loan first.
Shop for a lower rate.

The tool shows the target payment you need to hit.

Should I take a shorter term or just pay extra each month?

Extra payments give you freedom — you can skip them in a tight month. A shorter term usually comes with a lower rate but locks you into a bigger required payment. Test both in Loan A and Loan B and compare total cost.