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Free Loan Payment Calculator

Estimate the monthly payment on a fixed-rate loan, plus the total you’ll pay and how much of that is interest. Works for auto loans, personal loans, and mortgages.

Estimated monthly payment
386.66
Number of payments
60
Total paid
23,199.36
Total interest
3,199.36

Principal and interest only — excludes taxes, insurance, and fees. Estimate only.

Balance over time

05k10k15k20k012345Year
Balance remainingY-axis = balance, starting at 0.

Amortization schedule (by year)

Early years are mostly interest; principal grows as the balance falls.

YearPrincipalInterestBalance
13,536.061,103.8116,463.94
23,754.16885.7112,709.78
33,985.71654.168,724.07
44,231.54408.334,492.53
54,492.53147.340.00

Estimate only. This calculator provides estimates based on the values you enter and the formula shown. It is not financial advice and may not reflect every fee, tax, or lender requirement. Check figures with a qualified professional before making financial decisions.

Quick answer

The monthly payment on a fixed-rate loan is M = P · [ i(1+i)^n ] ÷ [ (1+i)^n − 1 ], where P is the loan amount, i is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12).

Formula & method

Fixed monthly payment (amortizing loan)

M = P × [ i(1 + i)^n ] ÷ [ (1 + i)^n − 1 ]
  • M — monthly payment
  • P — loan amount (principal)
  • i — monthly interest rate = annual rate ÷ 12
  • n — total number of monthly payments = years × 12

If the interest rate is 0, the payment is simply P ÷ n.

Examples

Example 1: $20,000 auto loan at 6% for 5 years
Input
P = 20000, annual rate = 6%, term = 5 years
Result
≈ $386.66 / month
Why
Total paid ≈ $23,199, of which ≈ $3,199 is interest over 60 payments.
Example 2: $300,000 mortgage at 7% for 30 years
Input
P = 300000, annual rate = 7%, term = 30 years
Result
≈ $1,995.91 / month
Why
Total paid ≈ $718,527, of which ≈ $418,527 is interest over 360 payments.
Example 3: $10,000 at 0% for 12 months
Input
P = 10000, annual rate = 0%, term = 1 year
Result
$833.33 / month
Why
With no interest, the payment is just 10,000 ÷ 12.

When to use this tool

  • Budgeting before taking out an auto, personal, or home loan.
  • Seeing how the rate or term changes your monthly payment and total interest.
  • Comparing two loan offers on total cost, not just the monthly figure.

Common mistakes

  • Forgetting that this is principal and interest only — property tax, insurance, and fees are extra.
  • Comparing loans by monthly payment alone. A longer term lowers the payment but raises total interest.
  • Entering the annual rate where a monthly rate is expected. Use the annual rate; the tool converts it.

Frequently asked questions

How is a loan’s monthly payment calculated?

It uses the standard amortization formula, which spreads principal and interest evenly so the balance reaches zero on the final payment. The formula is shown above.

Does this include taxes, insurance, or fees?

No. It estimates principal and interest only. A mortgage payment in particular often also includes property tax and insurance, which this tool does not add.

What is amortization?

Amortization is paying off a loan with equal payments over time. Early payments are mostly interest; later payments are mostly principal.

How can I lower my monthly payment?

A lower rate, a smaller loan amount, or a longer term each reduce the monthly payment. A longer term, though, increases the total interest you pay.

Why does a longer term cost more overall?

You borrow the money for more months, so interest accrues for longer — even though each individual payment is smaller.

Is this financial advice?

No. It’s an estimate for planning. Actual terms depend on your lender, credit, and fees. Confirm figures with the lender before borrowing.

Can I pay off my loan early and save on interest?

Yes. If you pay extra toward principal, you'll save interest and shorten the loan term. Check with your lender first — some loans have prepayment penalties, though these are rare in the US.

Sources & references

External references open in a new tab. We are independent and not affiliated with these organizations.

Disclaimer

This calculator provides estimates based on the values you enter and the formula shown. It is not financial advice and may not reflect every fee, tax, or lender requirement. Check figures with a qualified professional before making financial decisions.

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  • ✓ Runs entirely in your browser — nothing is uploaded.
  • ✓ Formula and method shown above
Last updated: How we calculateReport a correctionDisclaimer

Provided “as is” for general information only — results may be inaccurate, so verify before you rely on them. No warranty; use at your own risk.

Built and reviewed by HIFreeTools against the formula shown above and any authoritative references cited on this page. See our methodology and editorial standards.

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