Loan Payment Calculator
Calculate your monthly loan payment, total interest and full amortization schedule for any personal loan, car loan or credit line.
Amortization schedule
| Year | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| Year 1 | $4,695.88 | $3,498.89 | $1,196.98 | $16,501.11 |
| Year 2 | $4,695.88 | $3,733.22 | $962.65 | $12,767.89 |
| Year 3 | $4,695.88 | $3,983.24 | $712.63 | $8,784.64 |
| Year 4 | $4,695.88 | $4,250.01 | $445.87 | $4,534.64 |
| Year 5 | $4,695.88 | $4,534.64 | $161.24 | $0.00 |
A loan payment calculator works out the fixed monthly installment you will pay on a personal, car, student or business loan, along with the total interest cost over the life of the loan. Knowing this number before you borrow lets you compare offers, budget confidently and avoid taking on more debt than you can comfortably repay.
Enter the amount you want to borrow, the annual interest rate and the repayment term, and the calculator instantly shows your monthly payment and a complete amortization schedule.
How a loan payment is calculated
Most installment loans use the amortizing-loan formula, which spreads the principal and interest into equal monthly payments: M = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12) and n is the total number of payments (years × 12).
For example, a $20,000 loan at 7% over 5 years (60 payments) works out to a monthly payment of about $396 and roughly $3,761 in total interest. Because the payment is fixed, your early payments are mostly interest and later payments are mostly principal.
What affects your monthly payment
Three levers move your payment: the loan amount, the interest rate and the term. A larger loan or higher rate raises the payment; a longer term lowers the monthly payment but increases the total interest you pay. Your credit score also matters indirectly — a stronger score usually qualifies you for a lower rate, which can save hundreds or thousands over the loan.
Shorter vs. longer loan terms
A shorter term (for example 3 years instead of 5) means higher monthly payments but far less total interest, because the lender earns interest for fewer years. A longer term eases monthly cash flow but is more expensive overall. The right balance depends on what monthly payment fits your budget without straining it.
Frequently asked questions
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal, while the APR (Annual Percentage Rate) also includes lender fees. APR gives a truer comparison of the total cost between different loan offers.
Will making extra payments save me money?
Yes. Any amount paid above your scheduled payment goes straight to the principal, which reduces the balance that future interest is charged on. Even small, regular extra payments can shorten the loan and cut total interest noticeably.
Does this calculator include fees or insurance?
No. It calculates principal and interest only. Origination fees, insurance or other charges added by the lender are not included, so always confirm the full cost with your lender before signing.
Is the monthly payment fixed for the whole loan?
For a fixed-rate loan, yes — the payment stays the same every month. Variable-rate loans can change over time as the underlying rate moves, which makes budgeting less predictable.
Calculates the fixed monthly installment (EMI) for any loan — personal loan, car loan, student loan, or business loan. Shows the total interest cost of the loan so you can compare offers.
EMI = P × [r(1+r)^n] ÷ [(1+r)^n − 1] Where: • P = Principal loan amount • r = Monthly interest rate (annual rate ÷ 12) • n = Total number of monthly payments (years × 12) The amortization table shows exactly how each payment is split between principal and interest over the life of the loan.