Free payment calculator
Calculate the monthly payment on any loan — enter principal, annual interest rate, and term in months or years, updated live, as you type.
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Results are estimates. Consult a professional.
How the loan payment calculator works
An instalment loan — auto, personal, student, or any fixed-term credit — is repaid through equal monthly payments that cover that month's interest first, then reduce the remaining principal. This structure is called amortisation, and it means your early payments are mostly interest while later payments are mostly principal. The total payment amount never changes, but the split between interest and principal shifts every month.
The loan payment formula (also called the PMT formula) computes the fixed monthly payment required to fully pay off a principal balance at a given interest rate over a set number of months. Enter any three of the four variables — principal, APR, term, and payment — and the calculator solves for the fourth.
Worked example: $12,000 personal loan at 9% APR / 60 months
Morgan takes out a $12,000 personal loan at 9% APR to consolidate credit card debt. The lender offers a 60-month (5-year) term. What is the monthly payment and how much total interest will be paid?
Monthly payment by loan amount, APR, and term
The table below shows the monthly payment for common loan amounts and terms. Use it to quickly estimate what a loan will cost before applying.
| Loan amount | APR | 24 mo | 36 mo | 48 mo | 60 mo |
|---|---|---|---|---|---|
| $5,000 | 5% | $219/mo | $150/mo | $115/mo | $94/mo |
| $5,000 | 8% | $226/mo | $157/mo | $122/mo | $101/mo |
| $5,000 | 12% | $235/mo | $166/mo | $132/mo | $111/mo |
| $5,000 | 15% | $242/mo | $173/mo | $139/mo | $119/mo |
| $10,000 | 5% | $438/mo | $300/mo | $230/mo | $189/mo |
| $10,000 | 8% | $452/mo | $313/mo | $244/mo | $203/mo |
| $10,000 | 12% | $470/mo | $332/mo | $263/mo | $222/mo |
| $20,000 | 8% | $905/mo | $627/mo | $488/mo | $406/mo |
| $30,000 | 8% | $1,357/mo | $940/mo | $732/mo | $608/mo |
| $50,000 | 8% | $2,262/mo | $1,567/mo | $1,221/mo | $1,014/mo |
Source: Federal Reserve. Estimates assume fixed APR, monthly compounding, and equal payments throughout the term. No origination fees included.
Tips for choosing the right loan payment
The monthly payment is only one piece of the picture. The term length and APR together determine the total cost — a lower payment often means a much higher total interest bill.
- Shorter terms save money even though payments are higher — A $10,000 loan at 8% APR costs $813 in interest over 24 months versus $2,165 over 60 months. If you can afford the higher payment, the shorter term is always cheaper in total.
- Compare APR, not just the monthly payment — Lenders sometimes advertise a low monthly payment tied to a long term at a high rate. Run both through the calculator and compare total interest paid.
- Check for prepayment penalties before making extra payments — Some personal and auto loans charge fees for paying off early. Read the loan agreement's prepayment clause before sending extra principal.
- Model a lump-sum impact — If you plan to apply a bonus or tax refund to the loan, re-run the calculator with the reduced balance to see the new payoff date and interest savings.
- Rate-shop across at least three lenders — A 2% APR difference on a $20,000 48-month loan is about $750 in total interest. Pre-qualification at multiple lenders typically requires only a soft credit pull.
Accuracy and limitations
The calculator uses standard amortisation (equal monthly payments, interest charged on the remaining balance each month) and assumes a fixed APR for the entire loan term. It does not model origination fees (which affect the effective APR), variable rates, deferred-interest promotions, or balloon payments. For mortgages, property taxes and insurance are also excluded. Results are planning estimates — use your lender's official amortisation schedule for exact figures.
Not financial advice — consult a financial professional for your specific situation.
Loan payment terms defined
About this loan payment calculator
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