Loan Payment Calculator
Work out your monthly loan payment, total interest and total cost in seconds. Free, no sign-up.
How the loan payment is calculated
This calculator uses the standard amortization formula: payment = P × r ÷ (1 − (1 + r)−n), where P is the amount borrowed, r is the monthly interest rate (annual rate ÷ 12) and n is the number of monthly payments. It works for car loans, personal loans, student loans and any fixed-rate instalment loan.
Ways to pay less interest
- Choose a shorter term. Payments rise, but total interest falls sharply.
- Make a larger down payment so you borrow less.
- Pay extra each month. Even a small amount cuts the balance faster.
- Compare offers from at least three lenders before you sign.
Worked example
Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.
Tips and common mistakes
- Compare the APR, not just the headline rate.
- Check for early repayment fees before paying extra.
- Round your payment up to the next $10 to clear it sooner.
Learn more
Frequently asked questions
Does this include fees or insurance?
No. It shows principal and interest only. Add any lender fees, taxes or insurance separately.
Is the rate APR or interest rate?
Enter the nominal annual rate. If a lender quotes APR, the true cost will be slightly higher once fees are included.
Can I use it for a mortgage?
Yes for the principal and interest part. Use a term of 15 or 30 years and add property tax and insurance on top.
Money guides for this topic
All guides →How Loan Interest Really Works
Understand APR, amortization and why early payments are mostly interest, with tips to pay less.
Read guide →Buying a Home or Car: The Math Before You Sign
How to work out what you can really afford for a home or car, using simple rules and real numbers.
Read guide →Snowball vs Avalanche: The Math of Getting Out of Debt
Compare the two best debt payoff methods with real numbers and learn which one saves more money.
Read guide →Related calculators
Car Loan Calculator
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Open calculator →Student Loan Payoff Calculator
Find your payoff date and how much interest you save by paying extra on a student loan.
Open calculator →Results are estimates and not financial advice.