Loan Payment Calculator
A loan payment calculator turns an amount, an annual interest rate, and a term into a monthly payment. It does not calculate tax, fees, or insurance.
You type the rate. This page does not look one up.
Monthly payment
$386.66
Total paid
$23,199.60
Total interest
$3,199.60
Formula
Each monthly payment covers that month’s interest first. Whatever is left reduces the amount you still owe. Early in the term, interest is a larger share of the payment. Later, more of each payment goes to the principal. The page uses that standard fixed-rate formula and divides the annual rate you type by 12.
The formula is the same one used for a fixed-rate mortgage payment when you already know the amount borrowed. This page does not ask for a home price or a down payment. Property tax, insurance, and mortgage insurance are not included, so a lender’s full monthly housing cost will be higher than the payment shown here.
Use the interest rate from the loan offer. A quoted APR can include fees, so it is not always the rate to type. The term is in years and becomes months inside the formula. Five years is 60 payments. If you enter 0%, the payment is the amount divided by the number of months and the interest is zero.
Three figures come back. The monthly payment is the scheduled amount if the rate never changes. Total paid is the rounded monthly payment multiplied by the number of months. At a 0% rate, total paid is the amount borrowed and interest is zero, even when rounding the monthly payment leaves a cent short. Nothing you type is stored, and this page has no rate table to update. Compare two offers by changing only the rate or the term. A longer term lowers the monthly payment and usually raises total interest, because the balance stays outstanding for more months.
Payment = P × r × (1 + r)^n / ((1 + r)^n − 1)
- P Amount borrowed.
- r Monthly interest rate, the annual rate divided by 12.
- n Number of monthly payments.
Worked example
A loan of $20,000 at 6% for 5 years is 60 monthly payments.
The monthly payment is $386.66. Total paid is $23,199.60, and $3,199.60 of that is interest.
Tax, fees, and insurance are not included. The 6% rate is typed in, not looked up.
FAQ
Does this loan calculator include tax?
No. The payment is principal and interest only. It does not add sales tax, property tax, insurance, or lender fees.
What rate should I type?
Type the annual interest rate from the offer. The page divides it by 12. It does not look up a market rate.
Can I use this for a fixed-rate mortgage payment?
Yes, if you already know the amount you would borrow. The payment formula is the same. It will not include taxes or insurance.
Why is the payment rounded?
The formula is calculated first, then the monthly payment is rounded to the cent for display. Total paid uses that rounded payment.