Free Loan Payment Calculator
Estimate the monthly payment on a fixed-rate loan, plus the total you’ll pay and how much of that is interest. Works for auto loans, personal loans, and mortgages.
- Number of payments
- 60
- Total paid
- 23,199.36
- Total interest
- 3,199.36
Principal and interest only — excludes taxes, insurance, and fees. Estimate only.
Estimate only. This calculator provides estimates based on the values you enter and the formula shown. It is not financial advice and may not reflect every fee, tax, or lender requirement. Check figures with a qualified professional before making financial decisions.
Quick answer
The monthly payment on a fixed-rate loan is M = P · [ i(1+i)^n ] ÷ [ (1+i)^n − 1 ], where P is the loan amount, i is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12).
Formula & method
Fixed monthly payment (amortizing loan)
M = P × [ i(1 + i)^n ] ÷ [ (1 + i)^n − 1 ]
- M — monthly payment
- P — loan amount (principal)
- i — monthly interest rate = annual rate ÷ 12
- n — total number of monthly payments = years × 12
If the interest rate is 0, the payment is simply P ÷ n.
Examples
- Input
- P = 20000, annual rate = 6%, term = 5 years
- Result
- ≈ $386.66 / month
- Why
- Total paid ≈ $23,199, of which ≈ $3,199 is interest over 60 payments.
- Input
- P = 300000, annual rate = 7%, term = 30 years
- Result
- ≈ $1,995.91 / month
- Why
- Total paid ≈ $718,527, of which ≈ $418,527 is interest over 360 payments.
- Input
- P = 10000, annual rate = 0%, term = 1 year
- Result
- $833.33 / month
- Why
- With no interest, the payment is just 10,000 ÷ 12.
When to use this tool
- Budgeting before taking out an auto, personal, or home loan.
- Seeing how the rate or term changes your monthly payment and total interest.
- Comparing two loan offers on total cost, not just the monthly figure.
Common mistakes
- Forgetting that this is principal and interest only — property tax, insurance, and fees are extra.
- Comparing loans by monthly payment alone. A longer term lowers the payment but raises total interest.
- Entering the annual rate where a monthly rate is expected. Use the annual rate; the tool converts it.
Frequently asked questions
＋ － How is a loan’s monthly payment calculated?
It uses the standard amortization formula, which spreads principal and interest evenly so the balance reaches zero on the final payment. The formula is shown above.
＋ － Does this include taxes, insurance, or fees?
No. It estimates principal and interest only. A mortgage payment in particular often also includes property tax and insurance, which this tool does not add.
＋ － What is amortization?
Amortization is paying off a loan with equal payments over time. Early payments are mostly interest; later payments are mostly principal.
＋ － How can I lower my monthly payment?
A lower rate, a smaller loan amount, or a longer term each reduce the monthly payment. A longer term, though, increases the total interest you pay.
＋ － Why does a longer term cost more overall?
You borrow the money for more months, so interest accrues for longer — even though each individual payment is smaller.
＋ － Is this financial advice?
No. It’s an estimate for planning. Actual terms depend on your lender, credit, and fees. Confirm figures with the lender before borrowing.
Disclaimer
This calculator provides estimates based on the values you enter and the formula shown. It is not financial advice and may not reflect every fee, tax, or lender requirement. Check figures with a qualified professional before making financial decisions.
- ✓ Free to use
- ✓ No sign-up required
- ✓ Runs entirely in your browser — nothing is uploaded.
- ✓ Formula and method shown above
Provided “as is” for general information only — results may be inaccurate, so verify before you rely on them. No warranty; use at your own risk.
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