Does this include fees or insurance?

No. This calculator estimates principal and interest only. Origination fees, late fees, and optional insurance products are not included and can change your real cost.

What if my loan has a variable rate?

This tool assumes a fixed rate for the full term. For variable-rate loans, the payment will change whenever the rate resets, so treat the result as a snapshot, not a guarantee.

Why is most of my early payment interest?

Interest is charged on the remaining balance, which is highest at the start of the loan. As the balance shrinks, the interest portion of each payment shrinks too.

Loans

Loan Payment Calculator

Estimate the fixed monthly payment for an installment loan based on the amount borrowed, the interest rate, and the repayment term. Use it for personal loans, auto loans, or any fixed-rate installment debt.

Loan Payment

Total of all payments

Total interest paid

How it works

Formula & methodology

This calculator uses the standard amortizing loan formula: M = P * [r(1+r)^n] / [(1+r)^n - 1], where P is the loan principal, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments.

Because the payment is fixed, the portion going to interest is highest in the first month and shrinks every month after, while the portion going to principal grows over time.

Source: CFPB: How to calculate monthly payment on a loan

Example

Worked example

Example: a $20,000 loan at 7.5% APR for 4 years (48 months) produces a fixed monthly payment of about $483.58, with roughly $3,212 paid in total interest over the life of the loan.

FAQ

Frequently asked questions

Does this include fees or insurance?: No. This calculator estimates principal and interest only. Origination fees, late fees, and optional insurance products are not included and can change your real cost.
What if my loan has a variable rate?: This tool assumes a fixed rate for the full term. For variable-rate loans, the payment will change whenever the rate resets, so treat the result as a snapshot, not a guarantee.
Why is most of my early payment interest?: Interest is charged on the remaining balance, which is highest at the start of the loan. As the balance shrinks, the interest portion of each payment shrinks too.

Tips

Practical tips

Get quotes from at least three lenders (bank, credit union, online lender) before signing — rates for the same borrower can vary by a full percentage point or more.
A shorter term almost always means a higher monthly payment but a much lower total interest cost. Run both a 3-year and 5-year term through this calculator before deciding.
If your credit score is below 680, improving it for even 60-90 days before applying (paying down credit card balances, fixing report errors) can meaningfully lower the rate you're offered.

Results are estimates for general informational purposes only and do not constitute financial, tax, or legal advice. Always confirm important figures with a qualified professional or your lender before making a financial decision.