Loan Payment Calculator
Payment Calculator
A payment calculator lets you see exactly what a loan will cost each month and in total before you commit. It works for any fixed-rate installment loan: personal, auto, student, or business.
Conversion Formula
M = P × [r(1+r)^n] / [(1+r)^n - 1]. P is the loan amount, r is the monthly rate (annual APR / 12 / 100), and n is total monthly payments. When rate = 0, payment = P / n.
Step-by-Step Examples
$15,000, 7.5%, 48 months = $363.23/month
Total paid: $17,434.96; Interest: $2,434.96
$5,000, 12%, 24 months = $235.37/month
Total paid: $5,648.88; Interest: $648.88
Frequently Asked Questions
How is a monthly loan payment calculated?
Using the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the principal, r is the monthly interest rate (annual rate / 12), and n is the number of months.
What happens if I increase my monthly payment?
Any amount above the minimum payment goes directly to principal, reducing the outstanding balance faster and cutting total interest paid. Even an extra $50/month can save hundreds in interest.
How do I compare loan offers with different terms?
A shorter term means higher monthly payments but far less total interest. A longer term is easier month-to-month but costs more overall. Run both scenarios and compare the totalInterest column.