Loan Payment Calculator
Enter your loan amount, interest rate, and term to estimate your monthly payment.
This is an estimate based on a fixed rate, standard amortizing loan. Actual loan terms and fees may vary.
What This Loan Payment Calculator Does
This tool estimates the fixed monthly payment for a standard amortizing loan — the kind used for most personal loans, auto loans, and mortgages — based on the loan amount, annual interest rate, and term.
How It Works
The calculator uses the standard loan amortization formula, which spreads the loan amount and interest evenly across every monthly payment so that the loan is fully paid off by the end of the term. It also shows the total amount paid over the life of the loan and the total interest charged.
A Note on Accuracy
This calculator gives an estimate based on a fixed interest rate and no additional fees. Real loans may include origination fees, insurance, taxes, or variable rates that will change your actual payment — always check the exact terms with your lender.
Frequently Asked Questions
Does this include taxes or insurance?
No, this is a principal-and-interest estimate only. Mortgages in particular often include property tax and insurance in the actual monthly payment.
What if my loan has a 0% interest rate?
The calculator handles a 0% rate by simply dividing the loan amount evenly across the number of payments.
Can I use this for mortgages?
Yes, the same amortization formula applies, though real mortgage payments often include escrow items beyond principal and interest.
How to check this result
Enter the amount financed, annual interest rate and number of payments. Do not include a deposit in the loan amount unless it is financed.
Method and assumptions
A fixed-payment loan uses an amortization formula that spreads principal and interest across the scheduled payments.
Before making a decision
The estimate excludes lender-specific fees, insurance, late charges and changing-rate terms.
Understanding a fixed monthly payment
Method and inputs
Use the amount actually borrowed, a fixed annual interest rate and the repayment term in years. The tool converts years to a rounded number of monthly payments. With monthly rate r and payment count n, payment = P × r ÷ [1 − (1 + r)^−n]. At zero interest, payment is P/n.
Worked example
A 10,000 loan at 6% for three years has 36 payments of about 304.22. Using the unrounded payment, total repayment is about 10,951.90 and interest about 951.90. A lender may adjust the final instalment for rounding.
Limits and common mistakes
The result assumes monthly payments and no balloon payment, fees or rate changes. APR may include charges this interest-only formula cannot reproduce. Compare the lender’s repayment schedule before borrowing.
Does extending the term reduce the total cost?
Usually it lowers the monthly payment but increases total interest at the same positive rate. Compare both monthly affordability and total repayment.
Content updated: 2026-10-03.
Reference for checking the method
Amortization divides payments between principal and interest. This tool estimates a fixed monthly schedule rather than a lender quote.
This reference explains the concept; its publisher has not verified or endorsed this calculator.