Loan Payment Calculator
Find out the monthly payment on a loan, car finance or mortgage — and how much it costs you in total. Enter the amount you're borrowing, the annual interest rate and the term, and you'll see the monthly payment, the total interest you'll pay, and the total repaid. Updates as you type.
How loan payments work
Most loans use amortization: you pay the same fixed amount each month, but early on most of that payment goes to interest and only a little to the balance. As the balance shrinks, more of each payment chips away at the principal. The formula behind it:
payment = P · r · (1 + r)n ÷ [ (1 + r)n − 1 ]
where P is the loan amount, r is the monthly rate (annual ÷ 12), and n is the number of months.
- A shorter term means higher monthly payments but far less total interest.
- A lower rate helps most on long terms — shop around before you commit.
- Paying a little extra each month goes straight to principal and can save years of interest.
This is an educational estimate and doesn't include fees, insurance or taxes. Not financial advice.
FAQ
How is a monthly loan payment calculated?
It uses the standard amortization formula: payment = P·r·(1+r)n / ((1+r)n − 1), where P is the loan amount, r is the monthly interest rate (annual ÷ 12) and n is the number of months. Each payment is the same, but early on more of it goes to interest.
Does a shorter loan term save money?
Yes. A shorter term means higher monthly payments but much less total interest, because you are borrowing the money for less time. The calculator shows the total interest so you can compare terms directly.
Does this include taxes, insurance or fees?
No. It calculates principal and interest only. Mortgages and some loans add property tax, insurance or fees on top, so your real bill may be higher. Treat the result as the core loan cost.
Can I see the effect of a lower interest rate?
Yes — change the rate and watch the monthly payment and total interest update instantly. On long terms even a small rate difference changes the total cost significantly, which is why it pays to shop around.
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