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Loan Payment Calculator

$
%
Monthly payment
$518.96
Total interest
$6,137.53
Total of payments
$31,137.53

Calculate the monthly payment and total interest for any fixed-rate loan.

By Maya R. · Reviewed by David K., CFA · Updated

This is an educational estimate, not financial advice. Figures exclude taxes, fees, and individual circumstances. Verify with a licensed professional before making money decisions.

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How to use this calculator

  1. Enter the amount you are financing after any down payment or trade-in.
  2. Set the annual interest rate quoted by the lender.
  3. Enter the term in months (60 months = 5 years).
  4. Read the monthly payment, then the total interest you will pay over the loan.

Formula

M = P × [ i(1+i)^n ] ÷ [ (1+i)^n − 1 ]
  • M — monthly payment
  • P — amount financed
  • i — monthly rate (annual ÷ 12)
  • n — number of monthly payments

Worked example

A $25,000 loan at 9% over 60 months costs about $518.96 a month. You repay roughly $31,138 in total, of which about $6,138 is interest.

Frequently asked questions

What counts as the loan amount?

The amount financed after any down payment or trade-in.

Is this for any loan type?

It works for any fixed-rate amortizing loan — auto, personal, or student.

Does it include fees?

No, only principal and interest. Origination fees raise the effective cost (see the APR calculator).

What if the rate is 0%?

The payment is simply the amount divided by the number of months.

Can I change the term?

Yes — a longer term lowers the payment but increases total interest.

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MR
Maya R. · Author
Reviewed by David K., CFA · Updated 2026-06-03
Sources
Methodology · Report an error
Embed this calculator
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View answer.json (AI feed) 
{
  "tool": "loan-payment",
  "question": "How does the Loan Payment Calculator work?",
  "answer": "Calculate the monthly payment and total interest for any fixed-rate loan.",
  "formula": "M = P × [ i(1+i)^n ] ÷ [ (1+i)^n − 1 ]",
  "inputs": [
    {
      "id": "amount",
      "label": "Loan amount",
      "unit": "$"
    },
    {
      "id": "rate",
      "label": "Interest rate",
      "unit": "%"
    },
    {
      "id": "months",
      "label": "Term (months)",
      "unit": null
    }
  ],
  "sources": [
    {
      "name": "CFPB — Understanding loan costs",
      "url": "https://www.consumerfinance.gov/",
      "note": "Loan basics."
    }
  ],
  "updated": "2026-06-03"
}