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finance calculator

Loan Payment Calculator

Calculate the monthly payment for any personal, auto, or student loan using the principal, APR, and term.

Results

Monthly payment
$478 USD

How to use this calculator

  1. Enter loan amount, APR, and term in years.
  2. We convert APR to a monthly rate and compute the amortized payment.
  3. See the monthly payment output.

Inputs explained

Loan amount
Principal you plan to borrow.
Interest rate (APR)
Annual percentage rate; converted to a monthly rate for the formula.
Term length
Loan term in years (auto/personal loans often 3–7 years; student loans longer).

How it works

We apply the standard amortization formula using the loan term expressed in months.

If you enter a zero APR, the calculator simply divides the balance across the term.

Formula

Monthly payment = P * [r(1+r)^n] / [(1+r)^n - 1]
P = loan amount
r = APR / 12
n = years * 12

When to use it

  • Comparing auto loan offers with different rates and terms.
  • Budgeting personal loan payments before consolidating debt.
  • Testing how shorter terms impact monthly cost and total interest.

Tips & cautions

  • Longer terms lower the payment but increase total interest—check both monthly and lifetime impact.
  • If APR is 0%, the payment becomes principal ÷ months.
  • Fees or sales tax financed into the loan raise the effective amount; add them to the loan amount for accuracy.
  • Assumes fixed-rate, fully amortizing monthly payments; no balloons or variable rates.
  • Excludes late fees, origination, or prepayment penalties.
  • Does not model extra payments; those would reduce total interest and term.

Worked examples

$25k loan, 5.5% APR, 5 years

  • Monthly rate = 0.055 / 12 = 0.004583
  • n = 60
  • Monthly payment ≈ $477.54

$40k loan, 7% APR, 7 years

  • Monthly rate = 0.07 / 12 = 0.005833
  • n = 84
  • Monthly payment ≈ $604.44

Deep dive

This loan payment calculator uses the standard amortization formula to show monthly payment from amount, APR, and term. Enter your numbers to compare auto, personal, or student loan scenarios instantly.

Use it to see how term length and rate changes affect monthly budget and total interest. It assumes fixed-rate monthly payments with no fees included.

FAQs

Does this include sales tax or fees?
No. Add any origination fees or taxes to the loan amount before running the calculation.
Can I change to monthly/bi-weekly payments?
This version assumes monthly payments. Future iterations will include bi-weekly payoff modeling.
Can I model extra payments?
Not here. Extra principal reduces total interest and shortens the term; this shows the standard schedule.
Is this accurate for mortgages?
Yes for principal/interest math, but use the mortgage calculator for housing-specific context and fields.
Does it support variable rates?
No. It assumes a fixed rate for the entire term.

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This calculator is informational only. Confirm exact payments with your lender before financing.