How to calculate a loan payment
- Enter the amount you will borrow, the annual interest rate and the term in years or months.
- The monthly payment, total interest, total cost and payoff date update as you type.
- Add an extra payment to see how much interest you save and how much sooner the loan is paid off.
- Scroll down for the full amortization schedule by year or month, and download it as CSV for a spreadsheet.
The loan payment formula
For a fixed-rate loan with monthly payments, the payment is M = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the amount borrowed, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of payments. Borrowing 200,000 at 6% for 30 years gives r = 0.005 and n = 360, so M = 1,199.10 per month and about 231,676 in total interest.
Each payment first covers the interest on the remaining balance, and the rest reduces the principal. Early payments are therefore mostly interest, and the balance falls slowly at first and faster later, as the chart shows. Extra payments go straight to principal, which reduces every later interest charge; that is why even small extra amounts can shorten a long loan by years.
This calculator assumes a fixed rate, monthly payments and interest calculated monthly, which matches most mortgages, car loans and personal loans. Your lender's figures may differ by a few cents because of rounding, fees or daily interest. Everything is calculated in your browser; nothing you type is sent anywhere.
How much interest will I pay on my loan?
See "Total interest". It is the sum of the interest part of every payment over the whole term, assuming you make every payment on time.
Is it better to choose a shorter loan term?
A shorter term means higher monthly payments but much less total interest. Compare, for example, 15 and 30 years with the same rate.
What does amortization mean?
Paying off a debt in regular instalments that cover both interest and principal, so the balance reaches zero at the end of the term.