A printable, signable loan agreement with payment schedule
Payment per period
When you lend money to a family member, a friend, or a business partner on a handshake, there's rarely a written record of the amount, the interest, or the repayment schedule — and when repayment stalls or memories differ, there's nothing enforceable. This promissory note template turns that verbal loan into a clean, printable, signable document that contains all six legally required elements (parties, principal in numerals and words, interest rate and type, repayment schedule, maturity date, and signature blocks) plus a governing-law clause. It also computes your payment per period, total interest, total of payments, a full amortization schedule, and flags your rate against the IRS Applicable Federal Rate (AFR) and a typical state usury ceiling. Everything is calculated privately in your browser.
Say you lend a sibling $5,000 at 3.82% APR (the default rate), amortized monthly over a 36-month term. A 36-month loan is exactly 3 years, so the IRS short-term AFR (~3.59%) applies — and 3.82% sits comfortably above it, so the AFR flag comes back clear. The periodic rate is 3.82% ÷ 12 = 0.318333% per month, and there are n = 36 payments. The amortization formula gives a fixed payment of about $147.22/month. Over the life of the loan you collect roughly $5,299.96 total — about $299.96 in interest. Because the rate clears the AFR, the IRS imputed-interest / gift rule (IRC 7872) is not triggered, and 3.82% is well under any typical state usury ceiling, so both flags come back clear. Each amortized payment's interest portion shrinks and its principal portion grows until the balance closes at exactly $0.00.
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<p>Free <a href="https://snaptoolsuite.com/promissory-note-template/">Promissory Note Template</a> by Snap Tool Suite</p>This tool produces a self-help template and estimates, not legal or tax advice, and does not create an attorney-client relationship. A promissory note is enforceable only if it contains all required elements and is signed by the borrower — an unsigned note is unenforceable as a matter of law. The IRS AFR is published monthly and changes; the reference figures here (as of the April/May 2026 publications: short-term ~3.59%, mid-term ~3.82%, long-term ~4.62%, annual compounding) must be re-verified at irs.gov for your actual loan month. Charging below the AFR on a related-party loan can cause the IRS to impute interest as a gift (IRC 7872), subject to the $10,000 and $100,000 de minimis exceptions. Usury caps are set by state and vary widely. Calculations assume a fixed rate and equal periodic payments; variable-rate and interest-capitalizing structures are not modeled. Notarization is generally not required for validity but strengthens enforceability.
A written, signed promise by a borrower to repay a set sum to a lender on stated terms. It turns a verbal loan into an enforceable record. This template fills the required clauses with your details.
It must include the parties, principal, interest rate and type, repayment schedule, maturity date, and the borrower's signature. An unsigned note is unenforceable as a matter of law.
For loans over $10,000, charging at least the IRS AFR for the term avoids imputed-interest / gift treatment under IRC 7872. The AFR changes monthly — verify it at irs.gov.
Yes — usury limits are set by each state and vary, often around 8%–12% for non-bank loans where a cap applies. Exceeding it can void the interest or the note.
Generally no, but notarizing and keeping a signed original for each party strengthens enforceability. Secured notes may need a separate security agreement.
Yes. 100% free, everything runs in your browser. This is a self-help template, not legal or tax advice.
🔒 Everything is calculated in your browser. We don't store or sell your data. Not legal or tax advice.