Loans
Loan Payment Calculator
Enter loan amount, interest rate, and term to instantly see your monthly payment, total amount paid, and total interest cost.
🔒 All calculations happen instantly in your browser. No data is sent to any server.
How the calculation works
Monthly Payment (M) = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]
Where P = principal, r = monthly rate (annual rate ÷ 12), n = total months (years × 12)
Total Paid = Monthly Payment × n
Total Interest = Total Paid − Principal
Example: $25,000 at 6.5% over 5 years (60 months)
r = 0.065 ÷ 12 = 0.005417 → M = $488.85 → Total paid = $29,331 → Interest = $4,331
Frequently Asked Questions
- Three: the loan principal (amount borrowed), the annual interest rate as a percentage, and the loan term in years. For a mortgage at 7% over 30 years on $300,000, the monthly payment is $1,996.
- Yes — the amortization formula is the same for all fixed-rate instalment loans. Just enter the correct principal, rate, and term for your specific loan type.
- The interest rate is used to calculate your payment. APR includes the interest rate plus fees (origination, points, insurance) expressed as an annual rate. For a true cost comparison between lenders, use APR. For payment calculation, use the stated interest rate.
- A longer term reduces monthly payments but dramatically increases total interest. A $20,000 loan at 7% costs $1,277 in interest over 2 years but $7,753 over 5 years. Shorter terms always cost less overall.
- Extra payments reduce principal faster, cutting total interest and shortening the loan. Even one extra payment per year can save thousands. Use the Extra Payment Loan Calculator to see the exact savings.
- With standard amortization, each payment's interest portion is: remaining balance × monthly rate. At the start the balance is highest, so interest is highest. As principal falls, less goes to interest and more to principal — this reverses near the end of the term.