Loan Payment Calculator
Enter the loan amount, interest rate and term to see the monthly payment and total interest for three repayment types. Compare them side by side and open the full payment-by-payment schedule.
Standard amortization formula · your numbers are calculated in your browser
Enter your loan terms
Amount in dollars, term in months
12 months = 1 year
※ Assumes a standard loan with no grace period or extra payments. Prepayment penalties, variable rates, fees and daily interest accrual are not included, and lenders may calculate details differently.
Monthly payment
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- Total interest
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- Total repaid (principal + interest)
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What you pay over the life of the loan
Principal - Interest -
How the principal and interest split changes by payment
Total interest by repayment type
| Repayment type | Total interest | Total repaid |
|---|
Payment schedule
| Payment # | Payment | Principal | Interest | Balance |
|---|
Scroll the table to see every payment. Amounts are rounded to the cent, so the columns may differ from the overall totals by a cent or two.
Try different rates and terms. Save the link for each scenario so you can compare them later.
See what the same money could earn if you saved it instead※ This is a reference estimate for a standard repayment loan with no grace period. Your actual payment depends on the lender’s underwriting and the loan terms (fees, prepayment penalties, rate changes, daily interest and more). Confirm the real terms and payment with your lender.
Method: the standard loan-payment (amortization) formula for equal-payment loans
How to use
Three steps
Pick a repayment type: amortized (equal payments), equal principal or interest-only.
Enter the loan amount ($), annual rate (%) and term (months). Example: 25000 / 6.5 / 60
Press Calculate for the monthly payment, total interest, a three-way comparison and a payment schedule. Save or share the link.
Good to know
How loan payments are calculated
A loan payment has two parts: principal, the money you borrowed, and interest, the cost of borrowing it. With the most common type of consumer loan, called an amortized or equal-payment loan, your payment is the same every month, but the mix changes: early payments are mostly interest and later payments are mostly principal. Auto loans, personal loans, student loans and fixed-rate mortgages all work this way. This calculator also shows two other structures so you can see how the choice changes the total cost.
The monthly payment formula
For an amortized loan, the monthly payment M depends on the amount borrowed P, the monthly interest rate r (the annual rate divided by 12) and the number of monthly payments n.
M = P × r ÷ (1 − (1 + r)−n)
Example: borrow $25,000 at 6.5% for 60 months. The monthly rate is 0.065 ÷ 12 = 0.5417%, so the payment is about $489.15. Over 60 payments you repay $29,349.22, which means $4,349.22 of interest. In the first month, $135.42 of the payment is interest and only $353.73 reduces the balance.
Three ways to repay
Amortized (equal payments) keeps the payment constant, which is why it is the standard for car loans and mortgages. Equal principal repays the same amount of principal each month plus interest on the shrinking balance, so the first payment is the largest and the payments fall over time; the total interest is lower, but the early payments are heavier. Interest-only means you pay just the interest each month and repay the whole principal at the end, so the balance never goes down until the final payment. It keeps payments low but costs the most in total interest and carries refinancing risk.
See how term and rate change the total cost
A longer term lowers the monthly payment but raises the total interest. On a $300,000 loan at 6.5%, a 30-year (360-month) term costs about $1,896.20 a month and $382,633 in interest, while a 15-year (180-month) term costs about $2,613.32 a month and $170,398 in interest. On a $25,000 loan at 6.5%, stretching from 60 to 72 months cuts the payment from $489.15 to $420.25 but adds about $909 in interest. Always compare the total repaid, not just the monthly payment.
What an amortization schedule looks like
The schedule at the bottom of the results lists every payment. Here are selected rows for the $25,000, 6.5%, 60-month example, so you can see the shift from interest to principal. Notice that the payment never changes, but the interest portion shrinks every month.
| Payment # | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $489.15 | $353.74 | $135.42 | $24,646.26 |
| 2 | $489.15 | $355.65 | $133.50 | $24,290.61 |
| 3 | $489.15 | $357.58 | $131.57 | $23,933.03 |
| 12 | $489.15 | $375.39 | $113.76 | $20,626.38 |
| 24 | $489.15 | $400.53 | $88.62 | $15,959.86 |
| 36 | $489.15 | $427.36 | $61.79 | $10,980.81 |
| 48 | $489.15 | $455.98 | $33.17 | $5,668.30 |
| 60 | $489.15 | $486.52 | $2.64 | $0.00 |
Typical terms for common US loans
New car loans commonly run 60 to 72 months, personal loans 12 to 60 months, federal student loans have a standard 10-year (120-month) plan, and home mortgages are most often 15 or 30 years (180 or 360 months). Credit cards are different: they are revolving debt without a fixed payoff date, so use a payoff estimate rather than this calculator. Home equity lines of credit often start with an interest-only draw period, which is why the interest-only option here can be a useful comparison. Whatever the loan, a useful rule is to borrow only what you can repay comfortably, keeping total monthly debt payments well below your income and leaving room in your budget for savings and emergencies.
Ways to pay less interest
- Make extra principal payments. Adding $200 a month to the 30-year, $300,000 loan above would finish it in about 23 years instead of 30 and save roughly $103,000 in interest. Tell your lender that extra money should go to principal.
- Choose the shortest term you can afford. The payment is higher, but the interest drops sharply.
- Shop the rate. A lower annual percentage rate (APR) makes the biggest difference. Check offers from banks, credit unions and online lenders, and compare the APR, which includes most fees, rather than only the interest rate.
- Improve your credit before you borrow. Lenders price loans by risk, and a higher credit score usually earns a lower rate.
- Check for prepayment penalties so that paying early does not trigger a fee.
What this calculator does not include
The results cover principal and interest only. Mortgages often add property tax, homeowners insurance and mortgage insurance to the monthly bill, and loans can carry origination fees, late fees or variable rates that change the payment. The calculator also assumes payments are made monthly on schedule. For the exact figures on your own loan, read your loan estimate or contract and ask your lender for an amortization schedule.
Frequently asked questions
How do I calculate a monthly loan payment?
Enter the amount, annual rate and number of months. The calculator applies the standard amortization formula M = P × r ÷ (1 − (1 + r)^−n), where r is the monthly rate. For $25,000 at 6.5% over 60 months, the payment is about $489.15.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. The APR also includes certain fees and costs, expressed as a yearly rate, so it reflects the true cost better. This calculator uses the rate you enter; if you only have the APR, you can use that for a close estimate.
Why is most of my early payment interest?
Interest is charged on the remaining balance, which is largest at the start. As you pay down principal, less interest accrues and more of each payment goes to principal. The chart on this page shows that crossover.
Is it better to have a shorter loan term?
A shorter term means a higher monthly payment but much less total interest. Choose the shortest term that fits your budget, and keep some flexibility, since a lower payment can be easier to manage if your income changes.
What does interest-only mean?
You pay just the interest each month and the principal comes due at the end. This is sometimes used for short-term loans and some lines of credit. You still owe the entire balance at the end, so you need a plan to repay or refinance.
Can I use this for a mortgage, auto loan or student loan?
Yes for principal and interest. For a mortgage, add property taxes, insurance and any mortgage insurance on top. For federal student loans, check the repayment plan, since some plans adjust payments to income.
Is my loan information saved?
No. Everything is calculated in your browser. The share link only stores your inputs in the web address.