How it works
This works for any loan with a fixed rate and equal monthly payments: personal loans, car loans, student loans, a mortgage's principal and interest, or a store financing plan. Enter the amount, the APR and the length in years or months.
The grid underneath shows the payment for rates two points either side of yours and for common loan lengths, so you can see what shopping for a lower rate or choosing a shorter term would do.
For a mortgage with property tax, insurance and PMI, use the mortgage calculator. For a car purchase, the car payment calculator handles the down payment and works backward from a budget. To see how extra payments shorten a loan, use the loan calculator.
Formula
M = P × r ÷ (1 − (1 + r)^−n), where r = APR ÷ 12 and n = number of monthly payments
Questions people ask
How is a monthly loan payment calculated?
Lenders use the amortization formula: payment = P × r ÷ (1 − (1 + r)^−n), with P the amount borrowed, r the monthly rate (APR ÷ 12) and n the number of payments. Each payment covers that month's interest first; the rest pays down the balance.
What is the payment on a $10,000 loan?
At 8% APR it is about $313 a month over 3 years, $203 over 5 years and $121 over 10 years. Enter your own rate to see the exact figure.
Does a 0% loan work here?
Yes. With a 0% rate the payment is simply the amount divided by the number of months.