Loan Payment Calculator
Estimate your monthly payments and total interest on any personal or installment loan.
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Get in TouchYour monthly loan payment depends on the amount borrowed, your interest rate, and your loan term, calculated with the standard amortization formula. Borrowing $20,000 at a 6% rate over 5 years comes out to about $386.66 per month. A shorter term or lower rate reduces the total interest you'll pay.
How It Works
This calculator estimates the fixed monthly payment for a standard installment loan — the same math banks and lenders use for personal loans, auto loans, and fixed-rate mortgages. Enter your loan amount, annual interest rate, and loan term, and it calculates the equal monthly payment that fully pays off the loan (principal and interest) by the end of the term.
Formula
Loan payments are calculated using the standard amortization formula:
- M — your monthly payment
- P — the loan principal (amount borrowed)
- r — your monthly interest rate (annual rate ÷ 12)
- n — the total number of monthly payments (loan term in months)
Example
Say you borrow $20,000 at a 6% annual interest rate for 5 years (60 months):
- Monthly interest rate: 6% ÷ 12 = 0.5%
- Number of payments: 60
- Estimated monthly payment: ≈ $386.66
- Total paid over the loan: ≈ $23,199.60
- Total interest paid: ≈ $3,199.60
Assumptions & Limitations
This calculator assumes a fixed interest rate and equal monthly payments over the full loan term. It doesn't account for origination fees, prepayment penalties, variable rates, or extra principal payments — actual loan terms from a lender may vary. Results are estimates for educational purposes and shouldn't be treated as a formal loan offer.
Frequently Asked Questions
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