Loan Calculator
Estimate monthly payments on any loan.
Results update as you type.
This calculator is for illustrative purposes only. Actual rates, fees and terms vary by lender. Consult a qualified financial adviser before making borrowing decisions.
How it works
Your monthly loan payment is the fixed sum that repays a borrowed amount in equal installments over a set term, with each payment covering interest on the balance still owed plus a slice of principal. Seeing that figure before you sign matters because it tells you whether the repayment fits your monthly budget and reveals the true cost of borrowing once interest is stacked up over the years. This loan calculator applies the standard amortization formula, the method every bank and credit union uses, so the schedule is identical to what a lender will quote. Amortization is used because it produces a level payment that keeps interest and principal balanced from the first month to the last, retiring the debt exactly on schedule. Stretching the term with a loan calculator lowers each monthly payment but raises the total interest, since the balance is carried longer, while a shorter term does the reverse. Borrowers use a loan calculator to shop for personal, auto and consolidation loans, compare offers with different rates and terms, and decide how large a payment they can comfortably absorb. The result assumes a fixed rate and no fees, so add any origination charges separately to gauge the full cost.
M = P × r ÷ (1 − (1 + r)^−n), r = annual rate ÷ 12, n = years × 12
This is the present value of an annuity rearranged to solve for the payment. P is the amount borrowed, r the monthly interest rate and n the number of months. Dividing P × r by (1 − (1 + r)^−n) spreads the principal across all n payments while charging interest each month on the balance that remains. Because the balance shrinks with every payment, a constant amount keeps the loan on track to reach zero exactly at term.
Source:Consumer Financial Protection Bureau (CFPB)
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter loan amount, interest rate and loan term.
- 2
Adjust the options
Fine-tune any options to match your situation.
- 3
Read your result
Monthly payment updates instantly as you type — no button to press.
Frequently asked questions
Can I use this for a car loan?
Yes. Any fixed-rate installment loan — auto, personal, student refinance or debt consolidation — repays on the same amortization math, so the payment this tool returns matches what a lender will quote. For vehicles, remember the sticker figure often excludes tax, title, registration and any dealer add-ons rolled into the financing. Enter the actual amount financed after your down payment and trade-in to get an accurate monthly figure.
How can I lower my monthly payment?
Three levers move it: borrow less, secure a lower interest rate, or extend the term. A bigger down payment shrinks the principal directly. A stronger credit score or a shorter shopping window earns a better rate. Lengthening the term spreads the balance over more months, which cuts the payment but increases the total interest you pay, so weigh the monthly relief against the lifetime cost.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal alone. The APR bundles that rate together with mandatory fees — origination charges, points and some closing costs — into a single yearly percentage, so it is usually higher. Because APR reflects the full cost of the loan, it is the fairer number for comparing two offers. This calculator uses the interest rate, so add fees separately.
Is total interest included in the total of payments?
Yes. The total of payments is simply the monthly payment multiplied by the number of months, and it equals the amount you borrowed plus all the interest charged over the life of the loan. Subtracting the original loan amount from that total gives you the interest figure shown separately. It is the clearest way to see how much borrowing actually costs beyond the sum you received.
Does paying extra each month help?
Significantly. Any amount above the scheduled payment goes straight to principal, shrinking the balance that future interest is charged on. Because interest is front-loaded, extra payments made early in the term save the most. Even a modest recurring overpayment can cut months off the schedule and hundreds or thousands in interest. Confirm your lender applies overpayments to principal and charges no prepayment penalty first.