Loan Payment Calculator
Calculate monthly loan payments, total interest, and view a full amortization schedule. Free tool — no signup required.
Quick Answer
To calculate loan payments, enter the loan amount, annual interest rate, and loan term in years to see your monthly payment and total interest.
How to Use the Loan Payment Calculator
- Enter the required values in the input fields.
- The calculator applies the formula automatically.
- Read the result displayed below the inputs.
Frequently Asked Questions
- How is the monthly payment calculated?
- The formula is M = P × [r(1+r)^n] / [(1+r)^n – 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly payments (years × 12).
- Does this include taxes and insurance?
- No. This calculator computes principal and interest (P&I) only. For mortgages, your actual payment may also include property taxes, homeowner's insurance, and PMI (PITI), which are not included here.
- How do extra payments affect the loan?
- Making extra payments toward principal reduces the remaining balance faster, which decreases total interest paid and can shorten the loan term significantly. Even small extra payments can save thousands over the life of a mortgage.
What is a Loan Payment Calculator?
A loan payment calculator determines the fixed monthly payment required to fully repay a loan over a specified term at a given interest rate. It uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n – 1], where P is the principal, r is the monthly interest rate, and n is the total number of payments. The calculator also generates an amortization schedule showing exactly how much of each payment goes toward principal versus interest over the life of the loan. This is essential for mortgage planning, auto loans, personal loans, and any installment-based borrowing.
Common Use Cases
- Planning monthly budgets for mortgage payments on home purchases
- Comparing auto loan offers from different lenders and dealers
- Evaluating personal loan options and total borrowing costs
- Understanding how extra payments reduce total interest paid
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