Calculate& Decide

Money & Finance calculator

Loan Payment Calculator

This calculator estimates the equal monthly principal-and-interest payment required to repay a fixed-rate loan over a chosen term.

Updated · Inputs stay in your browser

Educational estimate: This result is not financial, tax, legal, or investment advice. Check real terms and consider qualified advice for important decisions.

Enter your values

Choose the symbol used to display amounts.
Amount borrowed.
Nominal annual rate, not a monthly rate.
For example, 5 years equals 60 monthly payments.

Your values stay on this device. Nothing is sent to Calculate & Decide unless you deliberately use your device's share feature.

What this result means

This calculator estimates the equal monthly principal-and-interest payment required to repay a fixed-rate loan over a chosen term. The results panel explains the main number and the quantities that produced it, so you can check whether the estimate answers your real question.

Formula used

M = P × r(1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is principal, r is the monthly interest rate, and n is the number of monthly payments.

Step-by-step calculation

  1. Validate every required value and reject values outside the stated field limits.
  2. Convert rates and time periods to the units required by the formula.
  3. Calculate with full JavaScript number precision; do not round intermediate values.
  4. Round only the displayed result and explain the practical meaning.

Worked example

For a $20,000 loan at 6% annual interest over 5 years, the monthly rate is 0.5% and there are 60 payments. The estimated payment is $386.66, total payments are $23,199.36, and total interest is $3,199.36.

Assumptions and limitations

  • The interest rate stays fixed for the full term.
  • Payments are made monthly and on time.
  • Fees, insurance, taxes, penalties, and optional products are excluded.

How to use this calculator

  1. Choose a currency symbol when the tool uses money.
  2. Enter values in the units shown beside each field.
  3. Select Calculate, then read both the main result and interpretation.
  4. Change one uncertain input at a time to understand sensitivity.
  5. Use Copy result or Share only when you choose to move the result outside this page.

Common mistakes

  • Entering a monthly rate where the form asks for an annual rate.
  • Comparing payment amounts without comparing fees and total cost.
  • Assuming this estimate is a lender quote or approval.

Frequently asked questions

Does this include loan fees?

No. Add lender fees and other charges separately when comparing real offers.

What happens at 0% interest?

The principal is divided evenly by the number of monthly payments.

Why can a lender quote differ?

A lender may use different timing, fees, insurance, taxes, rounding rules, or loan features.

Methodology and sources

See the site-wide calculation methodology and editorial standards. Formula errors can be reported through the error-reporting instructions.

Published and reviewed .