Loan Payment Calculator
Calculate the monthly payment on any fixed-rate loan.
A fixed loan payment is set by three inputs: the amount borrowed, the interest rate, and the term. The formula spreads principal and interest into equal monthly amounts. On a $25,000 loan at 7.5% over 5 years the payment is about $501 a month. Lengthening the term lowers the payment but adds interest; raising the rate raises both.
These results are estimates for informational purposes only and are not financial, tax, or legal advice. Your actual figures from a lender or the IRS may differ. Consult a qualified professional before making decisions.
Estimated monthly payment
$500.95
Principal vs. interest paid per year
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $4,282 | $1,730 | $20,718 |
| 2 | $4,614 | $1,397 | $16,104 |
| 3 | $4,972 | $1,039 | $11,132 |
| 4 | $5,358 | $653 | $5,774 |
| 5 | $5,774 | $237 | $0 |
About the Loan Payment Calculator
This calculator finds the monthly payment on any installment loan with a fixed rate, whether it is for a car, a renovation, or debt you are consolidating. The math is the standard amortization formula, which solves for the single payment that retires the balance exactly at the end of the term. The result shows that payment, the total of all payments, and the interest you pay along the way. Of the three inputs, the term has the most visible effect on the monthly number. Stretching a loan from three years to six can cut the payment by a third, which feels like relief, but it can nearly double the interest because you carry the balance twice as long. The rate works the other direction and is worth shopping hard, since even half a point changes the lifetime cost on a large balance. Use the schedule below to see how little of an early payment goes to principal, then how that flips as the balance shrinks.
Frequently asked questions
How is a monthly loan payment calculated?+
It uses the amortization formula M = P r (1 + r)^n / ((1 + r)^n − 1), where P is the amount, r is the monthly rate (annual rate divided by 12), and n is the number of months. The result is the fixed payment that clears the loan on schedule.
Does a longer loan term lower my payment?+
Yes, a longer term spreads the balance over more months, so each payment is smaller. The trade-off is more total interest, because you owe the balance for longer. A shorter term costs more per month but less overall.
What part of my payment goes to interest?+
Early in the loan most of each payment is interest, since interest is charged on a large balance. As the balance falls, more of every fixed payment goes to principal. The schedule on this page shows the split month by month.
Will my payment change over the loan?+
On a fixed-rate loan the payment stays the same for the entire term. Only a variable-rate loan, where the rate tracks an index, would change your monthly amount. This calculator assumes a fixed rate.