DIY Cost Tools
Loan Payment Calculator
FINANCIAL CALCULATOR
Loan Payment Calculator
Estimate principal-and-interest payment, total payments, and total interest for a fixed-rate amortizing loan.
How it works
Enter the amount financed, nominal annual interest rate, and number of monthly payments. Add fees only if they are rolled into the balance.
Formula
For monthly rate r and n payments: payment = principal × r × (1 + r)^n ÷ ((1 + r)^n − 1). At 0% interest, payment = principal ÷ n.
Worked example
A $25,000 balance at 7.5% for 60 months produces an estimated principal-and-interest payment of about $500.95.
Important limits
- This assumes a fixed rate, equal monthly payments, and no skipped or extra payments.
- APR can include fees and may differ from the interest rate entered.
- Taxes, insurance, late fees, prepayment rules, and lender-specific rounding are not included.
Frequently asked questions
Is this the same as my total monthly payment?
Not necessarily. A mortgage or vehicle payment may include taxes, insurance, service products, or other charges.
Why is APR sometimes higher than the interest rate?
APR can reflect the rate plus certain loan fees, making it a broader comparison measure.
Sources and review notes
The Consumer Financial Protection Bureau explains that amortizing payments are divided between principal and interest. Last reviewed September 29, 2026.