Free loan and mortgage tool
Payment Calculator for Monthly Loan Payments
Estimate monthly payments, total interest, payoff time and extra payment savings for personal loans, car loans, mortgages and business financing.
Payment Calculator Guide
Compare Loan Offers
Small interest rate changes can create large lifetime cost differences. Compare the monthly payment and total interest before choosing a lender.
Plan Extra Payments
Extra principal payments can shorten the payoff timeline and reduce total interest, especially early in the loan term.
Check Affordability
A lower payment can help monthly cash flow, but longer terms may increase total interest. Balance comfort today with cost over time.
How the Payment Formula Works
Most fixed-rate loans use amortization. The calculator takes your principal balance, converts the annual interest rate into a monthly rate, and spreads the repayment across the number of monthly payments.
The standard payment formula is: monthly payment = principal x monthly rate / (1 - (1 + monthly rate) raised to the negative number of payments). If the interest rate is zero, the payment is simply principal divided by total months.
For mortgages, your actual bill may also include property tax, homeowners insurance, mortgage insurance or association fees. For auto and personal loans, check lender fees and prepayment rules before making a decision.
Common Uses
| Use Case | What to Compare | Money Tip |
|---|---|---|
| Mortgage payment | Rate, term, down payment and extra principal | Compare 15-year and 30-year totals, not only monthly cost. |
| Car loan payment | Vehicle price, trade-in, rate and loan term | A shorter term can reduce interest and negative equity risk. |
| Personal loan | APR, fees and repayment flexibility | Use the total payment number to compare offers clearly. |
| Business loan | Payment size, cash flow and interest cost | Match the repayment term to the useful life of the asset. |
Payment Calculator FAQ
How is a loan payment calculated?
Most fixed-rate loans use an amortization formula based on principal, monthly interest rate and total number of monthly payments.
Can I use this for a mortgage?
Yes. It estimates principal and interest. Add taxes, insurance and other housing costs separately when planning your full monthly budget.
Can extra payments save money?
Extra payments can reduce the principal faster, which usually shortens payoff time and lowers total interest on amortizing loans.
Why is APR different from interest rate?
Interest rate measures the cost of borrowing principal. APR can include fees and other borrowing costs, so it may be higher than the interest rate.