Loan Payment Calculator

Enter a loan amount, annual interest rate, and term to see the monthly payment, total paid, and total interest — updates instantly as you type. Works for mortgages, auto loans, personal loans, or any fixed-rate installment loan.

Enter a loan amount, rate, and term above to calculate the monthly payment.

Monthly payment on a $10,000 loan

Estimated monthly payment at common annual interest rates and loan terms. Scale proportionally for other loan amounts — e.g. double every figure for a $20,000 loan.

Annual rate3 years5 years10 years
3%$290.81$179.69$96.56
4%$295.24$184.17$101.25
5%$299.71$188.71$106.07
6%$304.22$193.33$111.02
7%$308.77$198.01$116.11
8%$313.36$202.76$121.33
10%$322.67$212.47$132.15

How is a loan payment calculated?

A fixed-rate installment loan is paid off in equal monthly payments, each covering that month's interest plus a portion of the principal, using the standard amortization formula:

M=Pr(1+r)n(1+r)n−1

Where M is the monthly payment, P is the loan amount (principal), r is the monthly interest rate (the annual rate divided by 100, then by 12), and n is the total number of monthly payments (years × 12).

Example: $20,000 loan at 6% annual interest over 5 years

With r = 0.06 ÷ 12 = 0.005 and n = 60 payments, the formula gives a monthly payment of $386.66. Over the life of the loan that's $23,199.36 paid in total, of which $3,199.36 is interest.

Shorter term vs. longer term

The same $20,000 at 6% costs $608.44/month over 3 years ($1,903.79 total interest) versus $331.46/month over 6 years ($3,864.96 total interest) — a longer term lowers the monthly payment but increases the total interest paid, since interest accrues for more months.

Frequently asked questions

Does this include taxes, insurance, or fees?
No — this calculates principal and interest (P&I) only, the core of any installment loan payment. Mortgages in particular often bundle in property tax and homeowners insurance (sometimes called PITI), which would make the actual monthly payment higher than the figure shown here.
What happens with a 0% interest rate?
At 0% interest the payment is simply the loan amount divided evenly across the number of months, since there's no interest to add. A $12,000 loan at 0% over 4 years is exactly $250.00/month (12,000 ÷ 48), with $0 total interest.
Why does a 30-year mortgage cost so much more in total interest than a 15-year one?
Interest accrues every month the balance is outstanding, so stretching the same loan over twice as many months roughly doubles how long interest has to accumulate. A $300,000 loan at 6.5% costs $1,896.20/month over 30 years ($382,633.47 total interest) versus $2,613.32/month over 15 years ($170,397.98 total interest) — a higher payment but far less paid in interest overall.
Does making extra payments save money?
Yes. Any payment beyond the required monthly amount typically goes straight to reducing the principal (confirm your lender applies it that way rather than to future payments), which reduces the balance interest is calculated on for every remaining month — shortening the loan and cutting total interest paid, even though this calculator only shows the standard fixed schedule.