Estimate Your Monthly Loan Payment
Assumes equal monthly payments, a fixed interest rate, and no extra payments. Estimates exclude fees, taxes, and insurance.
How the Loan Payment Is Calculated
Each monthly payment covers interest and part of the loan balance. The estimate uses the loan amount, the monthly interest rate, and the number of monthly payments.
Monthly payment = P × r ÷ [1 − (1 + r)−n]
P is the loan amount, r is the annual interest rate divided by 100 and then by 12, and n is the loan term in years multiplied by 12.
For a 0% interest rate, the monthly payment is simply the loan amount divided by the number of payments.
Example: $10,000 at 6% for 5 Years
Number of payments: 60
Estimated monthly payment: $193.33
Estimated total paid: $11,599.68
Estimated total interest: $1,599.68
Totals use the unrounded monthly payment before displaying amounts to the nearest cent. A lender's payment rounding and final payment may produce slightly different totals.
Common Loan Payment Questions
Can I calculate a loan with no interest?
Yes. Enter 0 for the annual interest rate. For example, a $12,000 loan over 5 years at 0% has a $200 monthly payment and no interest.
Can I enter a term shorter than a year?
Yes. For example, enter 0.5 for 6 months. The term must convert to at least one whole month.
What happens if I choose a longer term?
For the same loan amount and positive interest rate, a longer term lowers the monthly payment but increases the total interest in this calculation.
Does the estimate include extra payments or changing rates?
No. It assumes the same rate and scheduled monthly payment throughout the term, with payments at the end of each month.
What does total paid mean?
It is the estimated sum of the scheduled loan payments. Total interest is that amount minus the original loan amount. Fees and other charges are not included.