Loan Calculator — Monthly Payment Estimator
Use this loan calculator to estimate your monthly payment for any loan — mortgage, car loan, personal loan, or student loan. Enter the principal, annual interest rate, and loan term to see your payment breakdown instantly.
How the Formula Works
Monthly Payment: P × [r(1+r)^n] ÷ [(1+r)^n − 1]
Where P = Principal, r = Monthly Interest Rate, n = Total Months
Total Interest: (Monthly Payment × Months) − Principal
Example: $10,000 at 6% for 3 years → Monthly = $304.22, Total Interest = $951.92.
Frequently Asked Questions
How is a monthly loan payment calculated?
Using the amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P = principal, r = monthly rate, n = number of months.
What affects my monthly payment?
Three factors: loan amount (higher = more), interest rate (higher = more), and loan term (longer = less per month but more total interest).
What is the difference between APR and interest rate?
APR includes fees and other costs, making it higher than the base interest rate. Use APR for a true cost comparison between loans.
Should I choose a shorter or longer loan term?
Shorter terms mean higher monthly payments but less total interest. Longer terms reduce monthly payments but cost more overall.
Can I pay off a loan early?
Usually yes, but check for prepayment penalties. Paying extra reduces principal faster and saves significant interest.