Free · No sign-up · Updated 2026 · Any fixed-rate loan
Loan Payment Calculator: your monthly payment, in seconds.
Enter the amount you're borrowing, the APR, and the term. We'll show the monthly payment, how much interest you'll pay over the life of the loan, and the true total cost — for personal, auto, or home loans.
Educational tool only. This calculator and everything on this site is for general information and education. It is not lending, financial, or legal advice, and no result is an offer of credit. Your real rate, fees, and payment depend on the lender and your credit. Always read the loan agreement and consult a licensed professional before borrowing.
How a loan payment is calculated
Almost every fixed-rate loan — personal, auto, student, or home — uses the same piece of math, called amortization. You make the same level payment every month, and the lender splits each one between interest on the balance you still owe and principal that chips away at the debt. Early on, most of the payment is interest; near the end, almost all of it is principal. The result is a payment large enough to clear the loan exactly at the end of the term.
The formula. Monthly payment = P × r ÷ (1 − (1 + r)−n), where P is the amount borrowed, r is the monthly rate (APR ÷ 12), and n is the number of months. If the rate is 0%, the payment is simply the amount divided by the number of months.
This calculator runs that formula for you and then walks through the whole schedule to total up the interest. The chart shows, year by year, how the mix shifts from mostly-interest to mostly-principal — a useful picture of why paying extra early saves so much.
APR vs interest rate
People use these terms loosely, but they aren't identical. The interest rate is the price of borrowing the principal. The APR (annual percentage rate) folds in certain required fees as well, so it's usually a touch higher and is the better figure for comparing two offers fairly. When you're shopping, line up loans by APR rather than the headline rate. Enter the APR here for a cost-inclusive estimate of your payment.
Term length: the payment-versus-cost trade-off
Stretching a loan over more years lowers the monthly payment, which can feel like a win — but it quietly raises the total interest, because you're renting the lender's money for longer. A shorter term does the opposite: a bigger monthly bite, but far less interest overall. The comparison table above shows your exact numbers across several terms so you can weigh breathing room against total cost.
- Auto loans commonly run 3–7 years. Longer car loans are popular for the low payment but can leave you owing more than the car is worth.
- Personal loans usually run 2–7 years.
- Mortgages are typically 15 or 30 years; the 15-year option carries a higher payment but dramatically less lifetime interest.
Ways to pay less interest
- Shop the APR. Even half a percentage point adds up over a multi-year loan.
- Choose the shortest term you can comfortably afford — the payment is higher, but the interest savings are large.
- Pay a little extra toward principal when you can; on a fixed loan, every extra dollar early removes future interest.
- Watch for fees. Origination fees and prepayment penalties change the real cost; our personal loan calculator models the fee directly.
Frequently asked questions
How is a monthly loan payment calculated?
A fixed-rate loan uses the amortization formula: payment = P × r ÷ (1 − (1 + r)−n), where P is the amount borrowed, r is the monthly interest rate (APR ÷ 12), and n is the number of months. The result is a level payment that fully pays off the loan over the term, with each payment split between interest and principal.
What's the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. The APR also folds in certain lender fees, so it's usually a little higher and is the better number for comparing offers. This calculator treats the rate you enter as the periodic rate, so enter the APR for a cost-inclusive estimate.
Does a longer term lower my payment?
Yes — a longer term lowers the monthly payment but raises the total interest, because you owe the balance for more months. The comparison table shows the same loan across several terms so you can see the trade-off between a smaller payment and a larger total cost.
Does it store my numbers anywhere?
No. The calculator runs entirely in your browser and never sends your figures to a server, and no account is required. The "copy link" button encodes your inputs into the web address so you can bookmark or share a scenario. This site does show third-party ads (Google AdSense), which may set cookies; see our
Privacy Policy for details.
About the figures. The math uses the standard fixed-rate amortization formula. Typical APR ranges shown on the rate chips are illustrative of widely reported US averages and vary with credit score, lender, and Federal Reserve policy. This tool is for education only and is not lending, financial, or legal advice. Always read the loan agreement before borrowing.