💳 Loan Payment Calculator

Use this loan payment calculator to estimate your monthly payment, total interest, payoff date, and overall cost of borrowing. Adjust the loan amount, interest rate, term, down payment, and extra monthly payments to compare different scenarios and see how they affect your budget.

Loan payment results

Enter a loan amount, rate, and term above, then select Calculate Loan Payment to see your estimated monthly payment, total interest, and payoff timeline.

Loan Payment Amortization schedule

Once you calculate loan payments, the full month-by-month amortization schedule will appear here.

Calculator inputs and key terms: Loan Payment

This section explains each input used in the loan payment calculator and defines important terms so you can plug in accurate numbers.

• Loan amount: The amount you plan to borrow before any down payment. For a car or home purchase, this is usually the price minus any trade-in or cash you contribute.
• Annual interest rate (APR, %): The yearly cost of borrowing expressed as a percentage. APR typically includes the base interest rate plus certain lender fees.
• Loan term (years + additional months): The length of time you agree to repay the loan. Many personal and auto loans use whole years (for example 3, 5, or 7 years), but you can add extra months for more precise terms.
• Down payment: Any cash you pay upfront to reduce the amount borrowed. The calculator subtracts your down payment from the loan amount before calculating payments.
• Upfront fees / closing costs: One-time costs you pay at the beginning of the loan (origination fees, closing costs, title fees, and so on). These do not change the monthly payment but do increase your total cost of borrowing.
• Extra monthly payment: Any additional amount you plan to pay on top of the required payment each month. Extra payments reduce your principal faster, which can shorten your payoff time and lower total interest.

Formulas used in the loan payment calculator

The calculator uses standard time-value-of-money formulas commonly found in finance textbooks and professional practice.

Monthly payment

For a loan with fixed payments and a fixed annual percentage rate (APR):

r = monthly interest rate = APR / 12 / 100
n = total number of payments (months)
P = principal (loan amount minus down payment)

When r > 0:
Monthly Payment = P × [ r / ( 1 − (1 + r)−n ) ]

When the interest rate is 0%:
Monthly Payment = P ÷ n

Total interest and total paid

Total Paid = Monthly Payment × n
Total Interest = Total Paid − P

Extra payment impact

When you add an extra monthly payment, the calculator simulates the loan month by month, applying the extra amount to the principal each period until the balance reaches zero. That gives an estimated payoff time and total interest with extra payments so you can see how much you save.

Loan Payment Calculator FAQs

• How do I know how much I can afford to borrow?
  A good starting point is to work backward from your budget. Decide how much room you have for a monthly payment after covering essential expenses and savings. Then use this calculator to test different loan amounts and terms until the monthly payment fits comfortably within that budget.
• What’s the difference between interest rate and APR?
  The interest rate is the base cost of borrowing. APR (annual percentage rate) includes the interest rate plus many lender fees, expressed as a yearly percentage. APR is usually a better way to compare loans from different lenders.
• How does my credit score affect my loan payment?
  Lenders typically offer lower interest rates to borrowers with higher credit scores. A lower rate means a lower monthly payment and less interest over the life of the loan. If your credit score improves, it may be worth shopping for better loan offers or refinancing.
• Should I choose a shorter term with higher payments or a longer term with lower payments?
  A shorter term usually means higher monthly payments but much less interest overall. A longer term lowers the payment but increases the total interest you pay. Use this calculator to compare both options and decide which is more comfortable for your budget and goals.
• Do extra monthly payments always save me money?
  Yes—when extra payments are applied to principal, they shorten your payoff time and reduce total interest. Just confirm with your lender that extra payments are applied to the principal balance and that there are no prepayment penalties.
• Can this calculator be used for mortgages, auto loans, or personal loans?
  Yes. The underlying math is the same for most fixed-rate installment loans, including mortgages, auto loans, and personal loans. For mortgages, you may also want to include property taxes, insurance, and HOA dues in a separate budget to estimate your full monthly housing cost.