Free loan, credit card and bill tools for the US and Europe. Last reviewed November 10, 2026.
Loan payment calculator
Enter the amount you borrow, the yearly interest rate and the term. You get the monthly payment, the total interest and a year-by-year balance. Add an extra monthly payment to see how much sooner you would be debt free.
Enter a loan amount, a yearly interest rate up to 60%, and a term from 1 month to 40 years.
Your monthly payment
$594.04
| Year | Principal paid | Interest paid | Balance left |
|---|
Assumptions. A fixed-rate amortizing loan with equal monthly payments and interest charged on the remaining balance. It leaves out fees, taxes, insurance, interest-only periods, balloon payments and changes in a variable rate. Last reviewed November 10, 2026. See
how we calculate.
How the payment is worked out
The monthly rate r is the yearly rate divided by 12 and by 100. For a loan of P over n months, the payment is P x r x (1 + r)n divided by ((1 + r)n - 1). In the early months most of each payment is interest. Over time more of it goes to the principal.
This is a standard amortizing loan. It matches how most car loans, personal loans and fixed-rate mortgages work in the US, the UK and the euro area.
A worked example
Take a loan of $30,000 at 7% a year for 5 years. The payment is $594.04 a month. Over the 60 months you pay $35,642 in all, which is $5,642 of interest on top of the $30,000 you borrowed.
Now add $100 a month. The loan is paid off in 50 months instead of 60, and the interest falls to $4,670, which is $972 less.
What the term does to the cost
Same loan, same rate, different terms:
A smaller payment is easier on the monthly budget, but the interest adds up. If you can manage a higher payment, a shorter term usually costs less overall.
Frequently asked questions
How is a loan payment calculated?
Payment = P x r x (1 + r)^n / ((1 + r)^n - 1). P is the amount you borrow, r is the monthly interest rate (the yearly rate divided by 12 and by 100) and n is the number of monthly payments. Each month the interest is charged on the balance you still owe.
Does a longer term save money?
It lowers the monthly payment, but you pay more interest overall because the balance stays outstanding for longer. The table below compares the same loan over 3, 5, 7 and 10 years.
Can I use this for a car loan, personal loan or mortgage?
Yes, for any fixed-rate loan that charges interest on the remaining balance and is repaid in equal monthly payments. For a mortgage it covers principal and interest only, so add property tax, insurance and any mortgage insurance yourself.
How do extra payments help?
Extra money you pay goes straight to the principal, so the balance falls faster and less interest builds up. Enter an amount in the extra payment box to see how many months you save. Check with your lender that extra payments are applied to principal and that there is no prepayment penalty.
Why is my lender's payment a little different?
Lenders round the payment, may charge interest by the day for the first period, and may add fees or insurance. On a variable-rate loan a change in the rate also changes the payment. Your loan statement is the final figure.