Monthly Loan Payment Calculator
Calculate your monthly loan payment for mortgages, auto loans, and personal loans. See how much you'll pay each month and total interest over the loan term.
Result
- Loan Amount
- $0.00
- Interest Rate
- 0% per year
- Loan Term
- 0 months (0 years)
- Monthly Payment
- $0.00
- Total Payment
- $0.00
- Total Interest
- $0.00
Formula & Guide
Formula
PMT
Monthly Payment
PMT = P[r(1+r)^n]/[(1+r)^n-1]
Standard loan amortization formula
I
Total Interest
Total Interest = (PMT × n) - P
Interest = Total Payments - Principal
Formula Variables
PMT
Monthly Payment
Fixed monthly payment amount
P
Principal
Loan amount borrowed
r
Monthly Rate
Annual rate ÷ 12 (as decimal)
n
Number of Payments
Total months in loan term
Step-by-Step Scenario
Example Scenario
Loan Amount
$300,000
Interest Rate
6.5% (annual)
Loan Term
30 years
1
Convert to Monthly Values
- Monthly Rate (r) = 6.5% ÷ 12 = 0.5417% = 0.005417
- Number of Payments (n) = 30 × 12 = 360
2
Apply the Formula
- PMT = $300,000 × [0.005417(1.005417)^360] / [(1.005417)^360 - 1]
- PMT = $1,896.20
3
Calculate Total Costs
- Total Payments = $1,896.20 × 360 = $682,632
- Total Interest = $682,632 - $300,000 = $382,632
Additional Examples
Auto Loan
Loan Amount: $35,000
Interest Rate: 7.5%
Term: 5 years (60 months)
Monthly Payment
$700.30
Total Interest
$7,018
Personal Loan
Loan Amount: $15,000
Interest Rate: 10%
Term: 3 years (36 months)
Monthly Payment
$484.01
Total Interest
$2,424
Characteristics of Monthly Payment Calculation
Fixed Payments
Monthly payments stay the same throughout the loan term, making budgeting predictable and easy.
Interest Front-Loading
Early payments are mostly interest. As you pay down principal, more of each payment goes to principal.
Term Trade-offs
Longer terms mean lower monthly payments but more total interest. Shorter terms save money overall.
Extra Payments
Making extra payments toward principal can significantly reduce total interest and loan duration.
Important Notes
- This calculator shows principal and interest only. Actual payments may include taxes, insurance, and PMI.
- A lower interest rate or shorter term will reduce total interest paid significantly.
- Making one extra payment per year can shorten a 30-year mortgage by about 4 years.
- Consider your debt-to-income ratio when determining how much you can afford to borrow.
Frequently Asked Questions
Common questions about loan payments.
Monthly payment is calculated using the loan amortization formula: PMT = P[r(1+r)^n]/[(1+r)^n-1], where P is the principal, r is the monthly interest rate, and n is the number of payments. This formula ensures equal payments throughout the loan term.
Three main factors affect your monthly payment: loan amount (higher = higher payment), interest rate (higher = higher payment), and loan term (longer = lower payment but more total interest). Down payments reduce the loan amount and therefore the monthly payment.
Shorter terms mean higher monthly payments but less total interest paid. Longer terms have lower monthly payments but you pay more interest over time. Choose based on your budget and financial goals. A good rule is to keep total housing costs under 28% of gross income.
Interest rate is the cost of borrowing the principal. APR includes the interest rate plus other fees (origination fees, closing costs, etc.). APR gives a more complete picture of borrowing costs. For this calculator, enter the interest rate only.
You can lower monthly payments by: making a larger down payment, negotiating a lower interest rate, choosing a longer loan term, or paying points to reduce the rate. Refinancing is also an option if rates drop after you've taken the loan.