Calculator
Loan Payment Calculator
Estimate the monthly principal-and-interest payment for a fixed-rate loan, then compare how the amount borrowed, rate, and term affect repayment pressure.
Result
Estimated monthly payment
$489.15
Total paid
$29,349.22
How to use this calculator
What this calculator does
Estimate the monthly principal-and-interest payment for a fixed-rate loan, then compare how the amount borrowed, rate, and term affect repayment pressure.
How to use it
Enter the loan amount, annual interest rate, and repayment term. Use the monthly payment estimate to compare borrowing scenarios, then account for fees, taxes, insurance, and lender-specific charges before making decisions.
What the result means
Use the result as a planning estimate. Compare it against your budget, then account for fees, taxes, timing, and lender or account rules before making a decision.
Browse more finance calculators for related estimates and comparisons.
Results are estimates for planning and education. They do not include every fee, tax, lender rule, market outcome, inflation factor, or personal financial circumstance.
Scenario guidance
When to use this
Use this when comparing loan offers, testing different terms, or checking whether a proposed monthly payment fits alongside the rest of your budget.
Example scenario
A borrower comparing auto loan offers can test a 48-month, 60-month, and 72-month term to see the monthly payment tradeoff before requesting a final lender quote.
Inputs that usually matter most
- Loan amount, because it sets the principal that must be repaid.
- Annual interest rate, which can change the payment and total interest meaningfully.
- Loan term, since longer terms usually lower the payment but keep the loan active longer.
Common mistake to avoid
Do not treat the lowest monthly payment as automatically best. A longer term can look easier month to month while increasing the time in debt and the total interest paid.
How to interpret the result
Use the result as a principal-and-interest estimate. If two scenarios are close, compare both the monthly payment and the total repayment context before relying on the lower payment.
Results are estimates for planning and education. Actual loan costs can vary with APR, fees, compounding method, payment timing, lender rules, taxes, insurance, and personal circumstances.
Formula
M is the estimated monthly principal-and-interest payment, P is principal, r is the monthly interest rate, and n is the total number of payments. The calculation assumes a fixed rate, fixed term, and equal monthly payments.
Example payment
A $25,000 loan at 6.5% over 5 years is about $489 per month for principal and interest. Stretching the same loan over a longer term may lower the monthly payment, but it can keep the debt active longer and increase total interest.
Frequently Asked Questions
Does this include taxes or fees?
No. It estimates principal and interest only unless those costs are included in the amount financed. Review lender disclosures for the full cost of borrowing.
What happens if the interest rate is zero?
The calculator divides the loan amount evenly across the number of monthly payments.
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