Loan Payment Calculator
Calculate your estimated monthly loan payment, total interest, and total repayment based on the loan amount, annual interest rate, and repayment term.
Calculate your loan payment
Select your currency and enter your loan details. This calculator uses a standard fixed-rate amortization method with regular monthly payments.
Estimated monthly payment
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| Loan amount | — |
| Interest rate | — |
| Loan term | — |
| Monthly payment | — |
| Total interest | — |
| Total repayment | — |
Step-by-step calculation
What is a loan payment?
A loan payment is a scheduled amount a borrower pays toward an installment loan. For a standard fixed-rate amortizing loan, each regular payment contains both interest and principal. The interest is based on the outstanding balance, while the principal portion reduces what remains to be repaid.
Over time, the balance decreases and the allocation between interest and principal changes. With a typical amortizing loan, more of the payment tends to go toward interest earlier in the term and more toward principal later.
How is a loan payment calculated?
For a fixed-rate installment loan with regular monthly payments, the standard amortization formula can be used to calculate the scheduled payment.
M = monthly payment
P = loan principal
r = monthly interest rate expressed as a decimal
n = total number of monthly payments
The annual interest rate is divided by 12 to obtain the monthly rate, while the loan term in years is multiplied by 12 to obtain the number of monthly payments. A fixed-rate loan is structured so scheduled payments can fully amortize the balance over the stated term when the loan terms match the assumptions used in the calculation.
Loan payment example
Suppose you borrow 25,000 units of the selected currency at a fixed annual interest rate of 7.5% for 5 years.
Annual rate = 7.5%
Monthly rate = 7.5% ÷ 12 = 0.625%
Loan term = 5 years
Number of payments = 5 × 12 = 60
The calculator applies the amortization formula to estimate the monthly payment. Total repayment is the monthly payment multiplied by the number of payments, and total interest is total repayment minus the original principal.
What affects the cost of a loan?
- Loan amount: Borrowing more generally increases the monthly payment and total interest when the rate and term remain unchanged.
- Interest rate: A higher rate generally increases the payment and the total interest paid.
- Loan term: A longer term can reduce the scheduled monthly payment but generally increases total interest over the life of the loan.
- Payment frequency: Loans with weekly, biweekly, or other schedules can produce different repayment patterns than a monthly-payment calculation.
- Fees and charges: Origination fees, documentation charges, insurance, penalties, and other costs can increase the actual cost of borrowing.
Amortization and the changing interest portion
In an amortizing loan, each payment is allocated between interest and principal. Because interest is calculated from the outstanding balance, the interest amount generally falls as the balance is reduced. The principal portion therefore becomes larger over time when the scheduled payment remains fixed.
This calculator gives the scheduled payment and overall interest estimate, but it does not display a month-by-month amortization table.
Fixed-rate vs. adjustable-rate loans
This calculator assumes the interest rate you enter remains unchanged throughout the loan term. Adjustable-rate loans can have an initial fixed period followed by rate adjustments, so their future payments may change.
If your loan has a changing rate, interest-only period, balloon payment, negative amortization, or another special feature, compare this estimate with the lender’s actual repayment schedule.
How to use this loan payment calculator
- Select the currency in which you want the results displayed.
- Enter the original loan amount.
- Enter the annual interest rate.
- Enter the loan term in whole years.
- Select Calculate Loan Payment.
- Review the monthly payment, total interest, total repayment, and calculation steps.
What this calculator does not include
The estimate does not automatically include lender fees, origination charges, insurance, taxes, prepayment penalties, late fees, or other costs unless those costs are already incorporated into the loan amount you enter. It also does not model changing rates, irregular payments, skipped payments, extra payments, or refinancing.
Actual loan costs and terms depend on the lender, loan product, borrower, jurisdiction, and contract. Review the lender’s disclosures and agreement before making a borrowing decision.
Frequently asked questions
What is a loan payment?
A loan payment is a scheduled payment made toward an installment loan. A typical amortizing payment includes both principal and interest.
What formula does this calculator use?
It uses the standard fixed-rate amortization formula shown in the calculation section above.
Does a longer loan term lower the monthly payment?
Usually, yes. Spreading repayment over more months can reduce the scheduled monthly payment, but it generally increases total interest paid.
Why does total repayment exceed the loan amount?
The difference is primarily interest under this calculator’s assumptions. Total repayment equals the scheduled monthly payment multiplied by the number of payments.
Does this calculator include loan fees?
No. Fees and other charges are not included unless they are already reflected in the loan amount you enter.
Can I use it for a car loan?
Yes, it can provide a basic fixed-rate monthly-payment estimate for an installment loan such as a car loan, provided the loan follows the calculator’s assumptions.
Can I use it for a personal loan?
Yes. It can estimate a standard fixed-rate personal loan with regular monthly payments.
Can I use it for an adjustable-rate loan?
You can calculate a scenario using an assumed rate, but this tool does not model future rate changes.
What is amortization?
Amortization is the process of repaying a loan through scheduled payments that reduce the outstanding balance over time.
Does making extra payments reduce interest?
Extra payments can reduce the outstanding principal and may reduce future interest for many simple-interest amortizing loans, but the exact effect depends on the loan contract and how the lender applies extra payments. This calculator does not model extra payments.
Why is my lender’s payment different?
The lender’s payment may include fees, insurance, taxes, different payment timing, a different rate, or loan-specific terms that are outside this calculator.
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Important: This calculator is provided for general informational and educational purposes only. It does not constitute financial, lending, tax, legal, or investment advice. Results are estimates based on the information entered and a standard fixed-rate amortization formula. Actual payments, interest, fees, terms, and total borrowing costs may differ. Verify important financial information with your lender or a qualified professional before making financial decisions.