Loan Payment Calculator
Amortized monthly loan payment and total interest.
- Monthly payment
- 489.15
- Total paid
- 29349.22
- Total interest
- 4349.22
Loan Payment Calculator estimates the fixed monthly payment for an installment loan using the standard amortization formula. Enter the principal, annual interest rate, and term in months to see your payment, total interest, and total amount paid.
How it works
The tool converts your annual rate into a monthly rate, then applies the amortization formula to solve for a level monthly payment across the loan term. Total interest is the difference between total paid and the original principal.
Benefits
- Uses the standard amortization formula for accuracy
- Shows monthly payment, total paid, and total interest together
- Handles zero-interest promotional loans correctly
- Calculates instantly without uploading loan details
Use cases
- Estimate a car, personal, or student loan payment
- Compare monthly payments across different rates or terms
- Check how a longer term changes total interest paid
- Sanity-check a lender's quoted payment amount
Best practices
- Use the loan's stated APR, not a teaser or promotional rate
- Convert the term to months even if quoted in years
- Remember real payments may include escrow, fees, or insurance
- Compare total interest, not just monthly payment, across offers
Common mistakes
- Entering the term in years instead of months
- Using a nominal rate when the loan compounds differently
- Forgetting that shorter terms raise payments but cut total interest
- Assuming this estimate matches a lender's exact disclosure
Privacy
Loan figures are calculated locally in your browser using standard amortization math. Loan Payment Calculator does not upload or store your financial details on any server.
Frequently asked questions
- What formula does the loan payment calculator use?
- It uses the standard amortization formula: monthly payment equals principal times the monthly rate, divided by one minus (1 + monthly rate) raised to the negative number of months.
- How is the monthly interest rate derived from the annual rate?
- The annual percentage rate is divided by 100 and then by 12 to get a decimal monthly rate, which is standard for fixed-rate installment loans.
- What happens if I enter a 0% interest rate?
- With a 0% rate, the calculator simply divides the principal evenly across the number of months, since no interest accrues.
- Does this include fees, taxes, or insurance?
- No. This is a simplified amortization estimate covering principal and interest only. Real loan payments often include fees, taxes, or insurance that this tool does not model.
- Can I use this for mortgages as well as personal loans?
- The same amortization formula applies to any fixed-rate installment loan, including mortgages, auto loans, and personal loans, as long as you use the correct term in months.
- Is this financial advice?
- No. This tool provides estimates for informational purposes only. Consult a qualified financial professional before making borrowing decisions.
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