Loan Payment Calculator
Estimate the monthly payment on any fixed-rate loan, plus the total interest you'll pay over its life.
How to use
- Enter the loan amount you want to borrow.
- Enter the annual interest rate (APR) and the term in years.
- Your estimated monthly payment and total interest update instantly.
How the Loan Payment Calculator works
Works out the fixed monthly payment on an amortizing loan — a personal loan, student loan or any debt repaid in equal instalments — and shows how much of the total is interest.
It uses the standard amortization formula. The annual rate is divided by 12 to get a monthly rate, and the term in years is multiplied by 12 to get the number of payments. The payment is the amount that exactly clears the balance over that many months.
M = P × r / (1 − (1 + r)^−n)
Worked example
A $20,000 loan at 7% over 5 years gives r = 0.07/12 = 0.005833 and n = 60. The monthly payment works out to $396.02, so you pay $23,761 in total and $3,761 of that is interest.
Things worth knowing
- The formula assumes a fixed rate and equal payments. Variable-rate loans will drift from this figure.
- Origination fees, insurance and other charges are not included — compare APR rather than headline rate when shopping.
- At a 0% rate the calculator falls back to simply dividing the principal by the number of months.
Frequently asked questions
How is a monthly loan payment calculated?
It uses the amortization formula M = P·r / (1 − (1+r)^−n), where P is principal, r is the monthly rate, and n is the number of months.
Does this include taxes or fees?
No — it estimates principal and interest only. Add taxes, insurance or fees separately.
Why is so much of my early payment interest?
Interest is charged on the outstanding balance, which is largest at the start. Early payments are mostly interest and only later shift toward principal — see the amortization schedule tool for the month-by-month split.
Does paying extra each month help?
Substantially. Any amount above the required payment goes straight to principal, which reduces every future interest charge and shortens the term.
What is the difference between interest rate and APR?
The interest rate prices the borrowing alone. APR folds in fees, so it is the fairer number for comparing offers.