Payment Calculator – Estimate Monthly Loan Payments
Find the monthly payment for a loan, and see the impact of changing the term.
About the Payment Calculator
What is the Payment Calculator?
The payment calculator converts a loan amount, interest rate and term into a monthly payment, and shows how the payment changes across common terms.
Why use this calculator?
It is a fast way to compare "what if" scenarios: a 48-month versus a 60-month loan, or the effect of a rate change, without re-entering data.
How to use it
- Enter the loan amount and rate.
- Enter the term in months.
- Read the monthly payment and compare the alternative terms listed below it.
Formula
M = P · r(1+r)^n / ((1+r)^n − 1)
The comparison rows use the same rate but different terms.
Frequently Asked Questions
Why does a slightly longer term raise total interest so much?
Interest is charged on the balance over time. More months means the balance stays outstanding longer, so more interest accrues even though each payment is smaller.
What payment can I comfortably afford?
A common rule is to keep total debt payments below 36% of gross monthly income. Housing is often limited to 28% by lenders.
What is the difference between principal and interest?
The principal is the amount you borrow. Interest is the fee charged for borrowing it, shown either as an annual rate (APR) or a periodic rate. Early payments go mostly toward interest; later payments go mostly toward principal.
How does the loan term affect my payment?
A longer term lowers the monthly payment but increases the total interest you pay over the life of the loan. A shorter term raises the monthly payment but costs less overall.
What is an amortization schedule?
It is a table that breaks every payment into its principal and interest portions and shows the remaining balance after each payment.
Should I make extra payments?
Extra payments reduce principal directly, which shortens the loan and cuts total interest. Many loans have no prepayment penalty, but check your agreement first.
What is APR and how is it different from the interest rate?
The interest rate applies only to the balance. The APR (annual percentage rate) also includes fees and points, so it reflects the true yearly cost of the loan.
Is this calculator free to use?
Yes. Every calculator on this site is completely free, with no hidden fees, no subscriptions and no limits on how many times you can use it.
How accurate are the results?
We use standard, widely accepted formulas and calculate in your browser using double-precision arithmetic. Results are rounded for readability, so treat them as reliable estimates rather than a guarantee. Real-world factors can vary the true figure.
Can I add this calculator to my own website?
Yes. Open this calculator page and use the "Add to your website" box in the sidebar to copy a ready-made iframe snippet, then paste it into any HTML page.