Loan Payment Calculator
Enter your loan details — the payment updates as you type, and the link in your address bar always reflects your numbers.
How this calculator works
A fixed-rate loan is repaid in equal monthly installments. Part of each payment covers that month's interest; the rest reduces the balance, so the interest share shrinks every month while the principal share grows. The fixed amount that makes the balance hit zero exactly at the end of the term comes from the amortization formula M = P·r / (1 − (1 + r)−n).
Worked example
Borrow $20,000 at 7.5% for 5 years: the monthly rate is 7.5% ÷ 12 = 0.625%, and n is 60 payments. The formula gives a payment of about $400.76. Over the full term you pay roughly $24,045, of which about $4,045 is interest. Shorten the term to 3 years and the payment rises to ~$622, but lifetime interest drops to ~$2,396 — that trade-off is exactly what this tool lets you explore in seconds.
Frequently asked questions
How is the monthly loan payment calculated?
We use the standard amortization formula: M = P × r ÷ (1 − (1 + r)⁻ⁿ), where P is the amount borrowed, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. The result is the fixed amount that fully repays the loan, with interest, by the end of the term.
Does this work for car loans and personal loans too?
Yes. Any fixed-rate, fully-amortizing loan — car loans, personal loans, student loans, and most mortgages — follows the same math. Enter the amount, rate, and term and the payment applies regardless of the loan type.
Why is the total interest so high on longer terms?
Stretching the same balance over more months lowers each payment but keeps the balance outstanding longer, so interest accrues for more time. Compare a 3-year and a 7-year term with the calculator — the monthly relief is real, but the lifetime cost difference is usually striking.
Can I share a result with someone?
Yes — your inputs are stored in the page address as you type. Copy the link (or use the share button) and anyone who opens it sees the calculator pre-filled with your exact numbers.