Loan Payment Calculator
Use our free loan payment calculator to estimate the monthly payment on any type of loan. Whether you are financing a car, consolidating debt, or taking out a personal loan, enter your loan amount, interest rate, and repayment term to get an instant breakdown of your monthly obligation and total cost.
Loan payments are calculated using the same amortization formula as mortgages: M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the principal amount, r is the monthly interest rate, and n is the total number of monthly payments. This produces fixed monthly payments where early payments are more interest-heavy, and later payments go mostly toward principal.
Common loan types include auto loans (typically 3-7 years at 4-10%), personal loans (1-7 years at 6-36%), and student loans (10-25 years at 3-8%). The interest rate you receive depends on your credit score, income, debt-to-income ratio, and the lender.
To reduce total interest paid, consider making extra payments toward the principal, choosing a shorter loan term, or refinancing if rates drop. Even small additional monthly payments can shave months or years off your loan and save hundreds or thousands in interest.
Always compare the total cost of the loan (principal plus all interest) rather than just the monthly payment. A lower monthly payment over a longer term often results in significantly more total interest paid.