Loan Payment Calculator
Calculate an estimated monthly loan payment, total interest, and total amount repaid from the loan amount, annual interest rate, and repayment term.
Last updated: July 2026
Estimated monthly payment
Principal and interest summary
Principal
Total interest
Total repaid
How the payment was calculated
M = P × [r(1+r)n] ÷ [(1+r)n − 1]
At 0% interest, monthly payment = principal ÷ number of payments.
View amortization schedule
Rows use the unrounded internal payment. The final balance is clamped to zero to remove floating-point residue.
| Payment # | Payment | Principal | Interest | Remaining balance |
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Real loan statements may differ slightly because lenders can round each period and apply fees, timing rules, insurance, taxes, or other contract-specific terms. This is a calculation tool, not individualized financial advice.
What this loan payment calculator includes
The calculation uses the entered principal, fixed annual interest rate, and selected number of monthly payments. It assumes equal monthly scheduled payments and a fully amortized balance at the end of the term.
How is a loan payment calculated?
For a positive interest rate, the standard formula is M = P × [r(1+r)n] ÷ [(1+r)n − 1], where M is monthly payment, P is principal, r is monthly interest rate, and n is the number of monthly payments.
Monthly rate equals annual interest rate ÷ 12 ÷ 100. A 6% annual rate becomes 0.06 ÷ 12 = 0.005 per month. At 0%, principal is divided directly by the payment count.
Monthly payment versus total loan cost
A lower monthly payment does not automatically mean a lower total cost. With the same principal and fixed rate, extending the term generally spreads repayment into smaller scheduled payments while allowing interest to accrue across more periods, increasing total interest.
Interest rate versus APR
This calculator uses the annual interest rate entered. A lender's APR may include certain fees or other costs depending on the product and applicable rules, so APR and the stated interest rate are not always identical. This tool does not calculate APR from fees.
What is not included
Results do not automatically include lender or origination fees, taxes, insurance, closing costs, late charges, prepayment penalties, balloon payments, variable or introductory rates, payment holidays, or irregular schedules. Actual lender terms and rounding rules may differ.
Worked examples
$20,000 at 6% for 4 years
The monthly rate is 0.005 and there are 48 payments. The shared formula calculates an estimated monthly payment of $469.70, total repayment of $22,545.63, and total interest of $2,545.63.
Zero-interest loan
A $12,000 loan at 0% for 12 months is $12,000 ÷ 12 = $1,000 per month. Total interest is $0 and total repayment is $12,000.
Three years versus five years
For $20,000 at 6%, 36 months produces an estimated $608.44 monthly payment and $1,903.79 total interest. At 60 months, payment falls to $386.66, while total interest rises to $3,199.36. This is a mathematical comparison, not a recommendation.
Frequently asked questions
How do I calculate my monthly loan payment?
Use the principal, monthly interest rate, and number of monthly payments in the standard fixed-payment amortization formula.
Does a longer loan term reduce the monthly payment?
Usually, for the same principal and fixed rate, more payments reduce each scheduled payment but generally increase total interest.
What happens if the interest rate is 0%?
The principal is divided evenly by the number of monthly payments.
Is the interest rate the same as APR?
Not always. APR can include additional borrowing costs. This calculator uses only the annual interest rate entered.
Does the calculator include loan fees?
No. Fees, taxes, insurance, and other contract-specific costs are not automatically included.
Why might my lender's payment differ slightly?
Fees, payment timing, period-by-period rounding, compounding rules, insurance, taxes, and other contract terms can create differences.