Loan Payment Calculator

Estimate monthly loan payments, total interest and total repayment from the principal, rate and term.

Your loan estimate will appear here.

About the Loan Payment Calculator

Monthly payment is usually the first number borrowers look at, but term length and total interest matter just as much. This calculator estimates the scheduled payment for a fixed-rate amortizing loan and shows the broader repayment cost.

A lower monthly payment is not automatically a cheaper loan. Extending the term can reduce the payment while increasing the total interest paid over the life of the loan.

How to Use the Loan Payment Calculator

  1. Enter the amount actually being financed after any down payment or upfront reduction.
  2. Enter the annual interest rate and confirm that it represents the borrowing rate you want to model.
  3. Enter the repayment term and payment frequency.
  4. Calculate the payment, then compare total interest and total repayment as well as the periodic payment.

How the Calculation Works

For a fixed-rate amortizing loan, periodic payment M = P × r(1+r)^n ÷ [(1+r)^n − 1], where P is principal, r is the periodic interest rate and n is the number of payments.

The annual rate is converted to the periodic rate before the formula is applied. Total repayment = payment × number of payments, and total interest = total repayment − principal, excluding fees not entered.

Worked example

Loan Payment Calculator Worked Example

$20,000 for 5 years at 7%

With monthly payments, r = 0.07 ÷ 12 and n = 60. Applying the amortization formula gives a payment of about $396 per month. Over 60 payments, total repayment is roughly $23,760, so interest is about $3,760 before fees.

Result guide

Understanding Your Loan Payment Calculator Result

Use payment size and total interest together. If a term extension makes the payment comfortable but adds a large amount of interest, compare whether a shorter term is affordable.

Before you rely on the answer

Assumptions and Limitations

  • The interest rate remains fixed for the modeled term.
  • Payments are made on schedule and at the stated frequency.
  • Origination fees, insurance and penalties are excluded unless entered separately.

Practical tip

Using This Result in Practice

When comparing offers, use the same loan amount and term for each rate so you can see the true effect of pricing. If one lender adds fees, compare APR or total borrowing cost rather than payment alone.

Related calculations

Useful Calculations to Continue With

If you have two or more offers, use the Loan Comparison Calculator to compare payment and borrowing cost side by side.

If you want to see how each payment is split between principal and interest, use the Amortization Calculator.

Common questions

Loan Payment Calculator FAQ

Why does a longer loan term lower the payment?

The same principal is spread over more payments, but interest continues for longer, so total interest usually increases.

Does the payment include fees?

Only fees explicitly included in the financed amount or calculator inputs. Origination charges, insurance and other costs may be separate.

What happens if I pay extra each month?

Extra principal can reduce the balance faster and lower future interest. Use a payoff or amortization tool that supports extra payments for that scenario.