Monthly payment loan
For loans you repay in equal installments, such as car loans, personal loans, student loans and mortgages.
Amortization Schedule
What is a loan calculator?
A Loan Calculator works out the regular payment, total interest and full repayment schedule for a loan. Enter the amount, term, interest rate and how often you pay, and it shows what each payment will be and how much of it goes to interest. It has three modes: a standard monthly-payment loan, a deferred loan repaid in one lump sum, and a bond-style loan where you know the amount due at the end.
How to use it
- Choose the loan type at the top.
- Enter the loan amount, the term in years and months, and the interest rate.
- Pick the compounding method (most US consumer loans quote a monthly APR) and how often you pay.
- Click Calculate, then open View Amortization Table for the payment-by-payment or year-by-year schedule.
Loan payment formula
M = P × r(1 + r)^n ÷ ((1 + r)^n − 1)
where M is the payment, P is the loan amount, r is the interest rate per period (annual rate ÷ 12 for monthly payments) and n is the number of payments.
Example
You borrow $20,000 at 7% for 5 years with monthly payments:
- r = 0.07 ÷ 12 = 0.005833; n = 60
- Monthly payment: about $396.02
- Total paid: about $23,761, so total interest is about $3,761
Stretching the same loan to 7 years lowers the payment to about $301.85 but raises total interest to about $5,355.
What you can use it for
The same formula covers most fixed-rate installment loans. For a car purchase with a trade-in, tax and fees, use the Auto Loan Calculator. For unsecured borrowing, the Personal Loan Calculator adds examples for common amounts. To see how extra payments shorten a loan, try the Amortization Calculator.
What Affects Your Loan Payment?
Several factors can change the amount you pay each month and the total cost of a loan:
- Loan amount: Borrowing more generally increases the payment.
- Interest rate: A higher rate generally means more interest.
- Loan term: Longer terms usually reduce monthly payments but can increase total interest.
- Down payment: A larger down payment reduces the amount borrowed.
- Fees: Origination and other charges can increase the overall borrowing cost.
- Payment frequency: The timing and frequency of payments can affect the repayment schedule.
Comparing these factors can help you find a loan structure that better matches your financial plans.
Frequently Asked Questions
Use the formula M = P × r(1 + r)^n ÷ ((1 + r)^n − 1), or enter the amount, rate and term above. For example, $20,000 at 7% for 5 years is about $396.02 a month.
Usually, a longer term lowers the monthly payment because the balance is spread over more payments. However, you may pay more total interest over the life of the loan.
Yes. Enter the amount you will borrow after your down payment and trade-in. For a fuller estimate with sales tax and fees, use the Auto Loan Calculator.
It uses the standard loan formula, so for a fixed-rate loan with the same amount, rate and term the payment will match the lender’s figure. Your actual cost can differ because of fees, insurance or a rate that depends on your credit.
Yes. A mortgage loan calculator can estimate your principal and interest payment, and some calculators also include taxes, insurance, and other housing costs.
Disclaimer: This calculator gives estimates for general information only. It is not financial, tax or legal advice. Results depend on the numbers you enter and on simplified assumptions, so your actual figures may differ. Check important decisions with a qualified professional or the official source.
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