Payment Calculator
Calculate monthly payment for any loan or purchase. Enter amount, interest rate and term to get your payment instantly.
Monthly Payment
$0.00
How to Use the Payment Calculator
Enter the loan amount, annual interest rate, and term. The calculator shows your monthly payment, total cost, total interest, and a comparison table showing how different loan terms would affect your payment.
Payment Formula
M = P ร r(1+r)โฟ / ((1+r)โฟ โ 1) Where: M = monthly payment, P = principal, r = monthly rate (annual รท 12 รท 100), n = total months
Frequently Asked Questions
- Use the formula: M = P ร r(1+r)โฟ / ((1+r)โฟ โ 1), where P = principal, r = monthly interest rate (annual รท 12), n = number of payments. For a $15,000 loan at 7% for 3 years, the monthly payment is approximately $463/month.
- For a car loan: subtract your down payment and trade-in value from the vehicle price to get the financed amount. Then apply the loan formula with your interest rate and term (typically 36โ72 months). Add sales tax to the financed amount if applicable.
- Your monthly payment is determined by: (1) loan amount โ more borrowed = higher payment; (2) interest rate โ higher rate = higher payment; (3) loan term โ longer term = lower monthly payment but more total interest paid.
- You can lower monthly payments by: extending the loan term, making a larger down payment, refinancing at a lower rate, or paying down the principal. Note that extending the term reduces monthly payments but increases total interest paid.
- A balloon payment is a large lump-sum payment due at the end of a loan term. During the loan, you make payments as if it were a longer loan, then pay the remaining balloon balance at maturity. Balloon = P ร (1+r)โฟ โ PMT ร ((1+r)โฟ โ 1) / r.
- Each monthly payment has two parts: principal (reduces your loan balance) and interest (cost of borrowing). Early in the loan, most of your payment is interest. As you pay down principal, the interest portion decreases and the principal portion increases โ this is called amortization.
- Total payment with interest = Monthly payment ร number of months. Total interest = Total payment โ original loan amount. Example: $300/month ร 60 months = $18,000 total; if loan was $15,000, you paid $3,000 in interest.
- Down payment = Purchase price ร down payment percentage. For a 20% down payment on a $250,000 home: $250,000 ร 0.20 = $50,000. A larger down payment reduces your financed amount, monthly payment, and total interest paid.
- As of 2025, good rates vary by loan type: mortgages ~6โ7%; auto loans ~5โ8% for good credit; personal loans ~7โ15% for good credit; student loans ~5โ8%. Your rate depends on credit score, income, loan type, and market conditions.
- Longer terms mean lower monthly payments but significantly more total interest. Example for a $20,000 loan at 7%: 3-year term = $618/mo, $2,232 total interest; 5-year term = $396/mo, $3,760 total interest; 7-year term = $302/mo, $5,400 total interest.