Calculators
Loan Payment Calculator
Estimate monthly loan payments and total interest for a fixed-rate amortizing loan.
Estimate the fixed monthly principal-and-interest payment for a fully amortizing loan. Use one currency consistently; taxes, insurance, fees, and changing rates are not included.
Monthly payment
599.55
Total interest
115,838.19
Total of payments
215,838.19
Based on 360 monthly payments at a fixed 6% nominal annual rate.
This is an educational payment estimate, not a loan offer or affordability recommendation. Actual lender schedules can differ because of fees, compounding conventions, rounding, payment timing, taxes, insurance, or rate changes.
About This Tool
Estimate the regular monthly principal-and-interest payment for a fixed-rate, fully amortizing loan. Enter the amount borrowed, nominal annual interest rate, and term to see the monthly payment, total interest over the full term, and total of all scheduled payments. The calculation is useful for comparing simple loan scenarios and learning how rate and term affect borrowing cost, but it is not a lender quote or an affordability recommendation.
How To Use It
- Enter the amount borrowed before any interest. Use one currency consistently.
- Enter the fixed nominal annual interest rate as a percentage, such as 6 for 6%.
- Enter the loan term in whole years. The calculator converts it to monthly payments.
- Review the estimated monthly principal-and-interest payment, total interest, and total scheduled payments.
- Compare scenarios by changing one input at a time, while remembering that lender fees and other charges are outside this simplified model.
Examples
100,000 at 6% for 30 years
The standard amortization formula gives a monthly principal-and-interest payment of about 599.55. Across 360 payments, total interest is about 115,838.19.
Zero-interest loan
For 12,000 borrowed at 0% for 10 years, the payment is simply 12,000 divided by 120 months, or 100 per month, with zero interest.
Shorter term
For the same amount and rate, reducing the term generally raises the monthly payment but reduces the number of months over which interest accrues.
Higher interest rate
With the amount and term unchanged, a higher fixed rate raises the required monthly payment and total interest under the model.
Useful Notes
Monthly payment formula
For a positive monthly interest rate r, principal P, and n monthly payments, payment = P × r ÷ (1 − (1 + r)^−n). The calculator converts the entered annual percentage rate to r by dividing by 100 and then by 12.
Zero-interest case
When the annual rate is exactly zero, the standard formula would divide by zero. The correct payment is principal divided evenly by the number of monthly payments.
Total interest
Total scheduled payments equal the monthly payment multiplied by the number of months. Total interest is that total minus the original principal. This assumes every scheduled payment is made as modeled and no extra principal payments are added.
What this estimate excludes
The calculation excludes origination fees, closing costs, taxes, insurance, late charges, prepayment effects, variable-rate changes, lender-specific day-count or compounding rules, and other costs. Those items can materially change a real loan's payment or effective cost.
Use it for scenarios, not approval decisions
A payment formula does not determine whether a loan is affordable, suitable, available, or likely to be approved. Compare actual disclosures and lender terms before making consequential borrowing decisions.
FAQ
What does the monthly payment include?
It includes only modeled principal and interest for a fixed-rate fully amortizing loan. It does not automatically include taxes, insurance, fees, or other charges.
Why can total interest exceed the amount borrowed?
Long terms and positive rates can produce many interest-bearing payments. The total interest is the sum of modeled interest across the full schedule, not the annual rate multiplied once by principal.
Does a longer term lower the payment?
With the same principal and fixed rate, extending the term usually lowers the required monthly payment but typically increases total interest because repayment lasts longer.
Can I use 0% interest?
Yes. At 0%, the calculator divides principal evenly across all monthly payments and reports zero total interest.
Is this the same as an APR calculation?
No. This tool treats the entered percentage as the nominal fixed annual interest rate used to calculate monthly payments. APR may incorporate certain fees and other costs and can follow jurisdiction-specific rules.
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