Financial calculator
Loan payment
Calculate a fixed monthly payment for a loan from the principal, annual interest rate, and term in months or years. See total interest and total amount paid.
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About this calculator
A standard amortizing loan splits each payment into interest and principal. Early payments are interest-heavy; later payments reduce principal faster. The payment amount is chosen so the balance reaches zero at the end of the term.
This tool uses the classic fixed-payment formula based on the loan amount, nominal annual rate, and number of periods. It helps you compare shorter term / higher payment vs longer term / lower payment before you sign.
Banks may add fees, insurance, or different day-count conventions. Always confirm the APR and schedule on the real offer; this page is a transparent math check, not a lender quote.
How to use it
- 1Enter the loan amount (principal).
- 2Set the annual interest rate and the term (months or years, as the form allows).
- 3Calculate to see the estimated monthly payment.
- 4Review total interest and total cost; try a shorter or longer term to compare.
Frequently asked questions
- How is the monthly payment calculated?
- For a fixed-rate amortizing loan, payment ≈ P · r(1+r)^n / ((1+r)^n − 1), where P is principal, r the rate per period, and n the number of periods.
- Why does total interest fall if I shorten the term?
- You repay principal faster, so interest accrues on a smaller average balance—even if each monthly payment is higher.
- Is this the same as the bank’s APR?
- Not always. APR can include fees and other costs. Use this calculator for the pure interest-and-principal schedule, then compare with the lender’s full disclosure.
Results are mathematical estimates. Verify the real conditions of any financial product before making decisions.