Loan Payment Calculator
Calculate your monthly loan payment. Enter the loan amount, annual interest rate and loan term to instantly see your monthly payment, total cost and total interest.
Loan payment result
Here is the breakdown of your loan repayment.
Monthly payment
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Total repayment
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Total interest
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Interest / Principal
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How are loan payments calculated?
Monthly loan payments are calculated using an amortization formula that takes into account the loan principal, the annual interest rate converted to a monthly rate, and the total number of monthly payments. Each payment covers both principal repayment and interest charges.
The amortization formula
The standard formula for calculating a fixed monthly loan payment is:
M = P × [r(1+r)n] / [(1+r)n - 1]
- M = Monthly payment
- P = Loan principal (amount borrowed)
- r = Monthly interest rate (annual rate / 12 / 100)
- n = Total number of monthly payments
Good to know
This calculator assumes a fixed interest rate and constant monthly payments (amortization schedule). Actual loan offers may include additional fees, insurance, or variable rates that affect the total cost. Always compare the APR (Annual Percentage Rate) provided by lenders.