Loan Payment Calculator
Estimate the fixed monthly payment for an installment loan based on the amount borrowed, the interest rate, and the repayment term. Use it for personal loans, auto loans, or any fixed-rate installment debt.
How this calculator works
This calculator uses the standard amortizing loan formula: M = P * [r(1+r)^n] / [(1+r)^n - 1], where P is the loan principal, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments.
Because the payment is fixed, the portion going to interest is highest in the first month and shrinks every month after, while the portion going to principal grows over time.
Formula reference: CFPB: How to calculate monthly payment on a loan
Example
Example: a $20,000 loan at 7.5% APR for 4 years (48 months) produces a fixed monthly payment of about $483.58, with roughly $3,212 paid in total interest over the life of the loan.
Frequently asked questions
- Does this include fees or insurance?
- No. This calculator estimates principal and interest only. Origination fees, late fees, and optional insurance products are not included and can change your real cost.
- What if my loan has a variable rate?
- This tool assumes a fixed rate for the full term. For variable-rate loans, the payment will change whenever the rate resets, so treat the result as a snapshot, not a guarantee.
- Why is most of my early payment interest?
- Interest is charged on the remaining balance, which is highest at the start of the loan. As the balance shrinks, the interest portion of each payment shrinks too.
This calculator provides estimates for general informational purposes only and does not constitute financial, tax, or legal advice. Always confirm important numbers with a qualified professional or your lender/institution before making a decision.