Loan Payment Calculator
Find your monthly payment in seconds.
💡 Need Help Managing Payments or Covering Expenses?
Compare lending options and explore financial solutions that may help reduce monthly pressure.
Compare Loan Options →*Rates and approval terms vary by lender and applicant profile.
How to Use the Loan Payment Calculator
Enter your loan amount, annual interest rate, and term in years, then click Calculate. Here are two quick examples:
Example 1 — Home mortgage
Loan: $300,000 · Rate: 6.5% · Term: 30 years. Result: $1,896/month. Total interest paid over 30 years: $382,633.
Example 2 — Car loan
Loan: $25,000 · Rate: 5% · Term: 5 years. Result: $472/month. Total interest paid: $3,307.
Loan Payment Formula Explained
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
M = monthly payment, P = principal, r = monthly rate, n = number of payments
This is the standard amortization formula. Your annual interest rate is divided by 12 to get the monthly rate, and the loan term in years is multiplied by 12 to get the total number of payments. Each payment covers both interest and a portion of the principal.
Common Uses for a Loan Calculator
Mortgages
Calculate monthly payments on a home loan and see how much interest you'll pay over 15 or 30 years.
Auto Loans
Find out what your monthly car payment will be before you visit the dealership.
Personal Loans
Compare different loan amounts and terms to find a payment that fits your budget.
Student Loans
Estimate repayment amounts after graduation based on your total borrowed balance and interest rate.
FAQs
How is my monthly payment calculated?
Your payment is based on your loan amount, interest rate, and loan term using the standard amortization formula. A longer term means lower monthly payments but more interest paid overall.
What is the difference between principal and interest?
The principal is the amount you borrowed. Interest is the cost of borrowing — a percentage charged on the remaining balance. Early payments go mostly toward interest; later payments pay down more principal.
How do I lower my monthly payment?
You can lower your payment by borrowing less, negotiating a lower interest rate, or extending the loan term. Keep in mind a longer term means more total interest paid.
What happens if I pay extra each month?
Extra payments go directly toward the principal, which reduces the total interest you pay and shortens the loan term. Even small additional amounts each month can make a big difference over time.