Loan Payment Calculator
Enter a loan amount, annual rate and term to get the fixed monthly payment, total interest, and total cost.
How it works
Payment = P · r · (1+r)^n / ((1+r)^n − 1) where r = monthly rate, n = number of months
- Lenders amortize loans: every payment is partly interest and partly principal.
- Early payments are interest-heavy — that's why extra principal payments early in the loan save the most interest.
- A 0% rate loan divides the principal evenly across all payments.
FAQ
Does this work for car loans, personal loans and student loans? Yes — any fixed-rate, fully amortizing loan uses this exact formula.
Why is my lender's number slightly different? Lenders may add fees, insurance, or use slightly different rounding or day-count conventions.
How do I pay less interest overall? Shorten the term, negotiate a lower rate, or make extra principal payments — use this calculator to compare total interest between scenarios.