Monthly Payment vs Total Loan Cost
A longer term can lower the monthly payment but often raises total interest. A shorter term usually increases monthly payment but reduces long-term borrowing cost.
Loan Payment Calculator
Estimate the monthly payment, total interest, total amount paid, and payoff time for a fixed-rate loan.
Loan Payment Formula
PMT = P × r(1+r)^n / ((1+r)^n - 1)A fixed-rate loan payment is based on the loan amount, monthly interest rate, and number of payments. Each payment includes interest and principal; early payments usually contain more interest, while later payments reduce principal faster.
| Symbol | Variable | Description |
|---|---|---|
| P | Principal | Original loan amount. |
| r | Monthly interest rate | Annual percentage rate divided by 12. |
| n | Number of payments | Loan term in years multiplied by 12. |
How to Use the Loan Payment Calculator
- 1
Enter loan details
Add the loan amount, annual interest rate, and repayment term.
- 2
Add optional extra payment
Use the extra-payment field to see how faster principal reduction may affect payoff time.
- 3
Compare total cost
Look beyond the monthly payment and review total interest and total paid.
How Extra Payments Help
Extra payments reduce principal sooner. Because interest is charged on the remaining balance, even a modest extra monthly payment can shorten payoff time and lower total interest.
What This Calculator Does Not Include
Real loan offers may include origination fees, mortgage insurance, taxes, escrow payments, prepayment rules, and variable rates. Use the result as a planning estimate before comparing lender disclosures.
Loan Payment Calculator FAQ
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