Loan Payment Calculator
Estimate the monthly payment on any loan.
What a loan costs each month
The amortized-payment formula turns an amount, rate, and term into a fixed monthly payment. A $20,000 loan at 6% over five years is about $387 a month, and this shows the total interest too.
Adjusting the rate or term shows how sensitive the payment is: even a one-point rate change over a long term shifts the total interest by a surprising amount.
An estimate
Fees and compounding conventions vary by lender, so confirm the real figures. The loan figures you enter are never uploaded.
Frequently asked questions
What does a $25,000 loan cost at 8.5% for 5 years?
$512.91 a month, $30,774.80 in total, of which $5,774.80 is interest, over 60 payments.
What formula calculates the payment?
The standard amortization formula: payment = P × r ÷ (1 − (1 + r)^−n), where r is the monthly rate (APR ÷ 12) and n the number of months. At 0% APR it is simply P ÷ n.
Can I use it for any fixed-rate loan?
Yes, for personal, auto, student, or business loans with fixed monthly payments. Variable-rate and interest-only loans need a different calculation.
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