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Loan Payment Calculator
Enter the amount, the interest rate and the term. You will see the monthly payment, the total interest and the full amount you repay over the life of the loan.
Your loan details
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The figures above show what a loan costs at the rate you entered. To see what rates you personally qualify for, you need actual offers — and that requires a soft-search application that does not affect your credit file.
How the loan payment is calculated
Lenders use an amortising loan formula. Each payment is split into two parts: interest on the remaining balance, and a repayment of principal. Early in the loan most of each payment is interest; later, most of it goes to principal. The payment itself stays the same.
The formula: Monthly payment = P × r × (1 + r)n ÷ ((1 + r)n − 1)
Where P is the amount borrowed, r is the monthly interest rate (annual rate ÷ 12) and n is the number of monthly payments.
What changes your payment
| Factor | Effect on your payment |
|---|---|
| Larger amount | Higher payment — proportionally |
| Higher interest rate | Higher payment, and more of it goes to interest |
| Longer term | Lower monthly payment, but more total interest paid |
| Shorter term | Higher monthly payment, far less total interest |
A term example
On a $20,000 loan at 12.5% APR:
| Term | Monthly payment (approx.) | Total interest |
|---|---|---|
| 3 years | $670 | $4,118 |
| 5 years | $450 | $7,005 |
| 7 years | $359 | $10,196 |
The longer term lowers the payment but costs thousands more overall. That trade-off is the single most useful thing a loan calculator shows you.
Remember: The rate shown when the page loads is an indicative average for the currency you selected, not a quote. Replace it with the rate your lender has actually offered. Real payments may also include arrangement fees, insurance or taxes.
Frequently asked questions
Should I choose a shorter or longer term?
If you can comfortably afford the higher payment, a shorter term almost always costs less overall. Choose the longer term only if the lower payment is necessary for your budget — and plan to overpay when you can.
Does this include fees?
No. This calculator covers principal and interest only. For a version that includes origination fees, use the Personal Loan Calculator.
Can I use this for a mortgage or car loan?
The payment maths is the same for any amortising loan. Mortgages usually add property tax and insurance, and car loans often include tax and registration — add those on top of the payment shown here.
Methodology and sources
The loan payment formula is standard amortisation mathematics, documented by the Federal Reserve and used by lenders worldwide.
- Federal Reserve — Consumer Credit (G.19)Board of Governors of the Federal Reserve System
- CFPB — MortgagesConsumer Financial Protection Bureau
Last reviewed . If you find an error on this page, tell us.
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