Work out the monthly payment, total interest, and full payment schedule for a loan between family members or friends — free and private.
Enter the amount being lent, a yearly interest rate, and the term. The calculator assumes a standard amortized loan: equal monthly payments, where each payment first covers that month’s interest and the remainder reduces the balance. The default rate of 4.35% is the IRS mid-term Applicable Federal Rate — the minimum rate the IRS expects on most family loans of 3–9 years. Not sure what to charge? Start with the IRS Minimum Interest Rate Calculator (AFR).
The monthly payment uses the standard annuity formula: M = P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the principal, r the monthly rate (yearly rate ÷ 12) and n the number of monthly payments. At 0% interest the payment is simply the principal divided by the number of months.
Say you lend $10,000 to your daughter at 4.35% for 5 years. The monthly payment is $185.75. Over 60 payments she repays $11,144.95 in total, of which $1,144.95 is interest. In the first month $36.25 of the payment is interest and $149.50 reduces the balance; by the final year almost the entire payment goes to principal.
Usually yes, if you want to avoid tax complications. The IRS expects private loans to charge at least the Applicable Federal Rate (AFR) for the month the loan is made; below that, the shortfall can be treated as imputed interest and a gift. Loans of $10,000 or less between individuals are generally exempt. Our IRS minimum interest calculator shows this month’s rates.
A common approach is to charge exactly the AFR for the month and term of the loan. It is far below typical bank rates, so the borrower still gets a great deal, while the lender stays clear of imputed-interest issues. The AFR changes monthly and depends on the term: up to 3 years, 3–9 years, or over 9 years.
Yes. A short written agreement with the amount, rate, payment schedule, and what happens if payments are missed protects the relationship — and documents to the IRS that this is a real loan rather than a gift. You can generate one free with our loan agreement generator.
Completely free, no account needed. All calculations run in your browser — the amounts you enter are never sent to or stored on our servers. The URL updates as you type, so you can bookmark or share a result.
An amortized loan — what this calculator computes — pays the same amount each month until the balance reaches zero. Interest-only means paying just the interest each month, with the full principal due at the end. Most family loans are amortized because a steadily shrinking debt is easier on both sides.
Family Loan Tracker turns your numbers into a live loan: payment schedule, balance tracking, automatic reminders, and a clear history both sides can see.
Monthly payment
$185.75
Total interest
$1,145
Total paid
$11,145
Paid off by Jul 2031
Lending this money for real?
| # | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $185.75 | $149.50 | $36.25 | $9,850.50 |
| 2 | $185.75 | $150.04 | $35.71 | $9,700.46 |
| 3 | $185.75 | $150.59 | $35.16 | $9,549.87 |
| 4 | $185.75 | $151.13 | $34.62 | $9,398.74 |
| 5 | $185.75 | $151.68 | $34.07 | $9,247.06 |
| 6 | $185.75 | $152.23 | $33.52 | $9,094.83 |
| 7 | $185.75 | $152.78 | $32.97 | $8,942.05 |
| 8 | $185.75 | $153.34 | $32.41 | $8,788.71 |
| 9 | $185.75 | $153.89 | $31.86 | $8,634.82 |
| 10 | $185.75 | $154.45 | $31.30 | $8,480.37 |
| 11 | $185.75 | $155.01 | $30.74 | $8,325.36 |
| 12 | $185.75 | $155.57 | $30.18 | $8,169.79 |
Estimates for information only — not financial advice. Calculations run entirely in your browser; nothing you enter is stored or sent to us.