Loan Payment Calculator
Calculate your monthly payment, total cost, and total interest for any fixed-rate loan instantly.
Frequently Asked Questions
What is a loan payment calculator?
A loan payment calculator uses the standard amortization formula to determine your fixed monthly payment based on the loan amount, interest rate, and repayment term. It also shows your total amount paid and total interest over the life of the loan.
What types of loans can I use this for?
This calculator works for any fixed-rate installment loan — car loans, personal loans, student loans, home improvement loans, and more. It is not designed for revolving credit like credit cards.
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 divided by 12), and n is the total number of monthly payments. At 0% interest, the payment is simply the principal divided by the number of months.
Does this include taxes, insurance, or fees?
No. This calculator covers principal and interest only. Origination fees, insurance, and taxes are not included. Your lender will provide a full cost breakdown before you sign.
What is total interest paid?
Total interest paid is the difference between the total amount you repay over the life of the loan and the original loan amount. It shows the true cost of borrowing — the more months you have or the higher the rate, the more interest you pay.
How can I reduce the total interest I pay?
The two most effective ways are choosing a shorter loan term (fewer months = less interest overall) and securing a lower interest rate. Even a 0.5% rate difference can save hundreds or thousands of dollars on larger loans.