Payment Calculator
Calculate loan payments, credit card payments, and installment plans.
Loan Calculator
Principal loan amount
Annual interest rate
Number of months
How It Works
Calculation Results
Monthly Payment
Required payment amount
Total Interest
Over loan term
Total Paid
Principal + interest
Principal vs Interest
Loan Summary
Interest Analysis
Payment Tips
- • Bi-weekly payments can save significant interest
- • Higher down payments reduce total interest paid
- • Compare APR, not just interest rate
- • Consider total cost, not just monthly payment
- • Extra payments toward principal reduce interest
How it works
A payment calculator finds the fixed periodic payment that pays off a loan over its term. It amortizes the balance — each payment covers the interest on what's left, and the rest reduces the principal.
Loan payment
M = P · r(1 + r)ⁿ / [(1 + r)ⁿ − 1]
- P
- amount borrowed
- r
- rate per period (annual ÷ periods)
- n
- total number of payments
Worked example
- Loan P = $15,000 at 6%
- 3-year term → n = 36, r = 0.005
- (1 + r)ⁿ = 1.005³⁶ ≈ 1.197
- M = 15,000 × 0.005 × 1.197 ÷ (1.197 − 1)
Payment ≈ $456/month.
Good to know
- A longer term lowers each payment but raises total interest.
- Extra payments go straight to principal and shorten the loan.
- Use the APR, not just the rate, to compare loans that carry fees.
Related Calculators
Frequently Asked Questions
How is a monthly loan payment calculated?
Lenders use the amortization formula: Payment = P x [r(1+r)^n] / [(1+r)^n - 1], where P is the principal, r the monthly interest rate, and n the number of payments. This calculator applies it instantly for any amount, rate, and term.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal itself, while APR adds lender fees and points to show the true annual cost of the loan. Compare offers by APR, not just the advertised rate.
How does the loan term affect my payment?
A longer term lowers the monthly payment but raises total interest. For example, $20,000 at 7% costs about $396 per month over 5 years but only $232 over 10 years — while nearly doubling the interest paid.
Do extra payments reduce my monthly payment?
On most fixed loans, extra principal payments don't change the required monthly payment — they shorten the payoff date and cut total interest instead. Some mortgage lenders will recast the loan to lower payments after a large lump sum.
What loan types does this payment calculator work for?
It handles any standard amortizing loan: auto, personal, mortgage, or fixed installment plans. Interest-only loans and credit card minimum payments follow different rules, so use dedicated tools for those.