Loan Payment Calculator

Loan Payment Calculator

Loan payment formula

A fixed loan payment is usually based on principal, interest rate, and term. The standard amortization formula spreads interest and principal across equal payments, so early payments are interest-heavy and later payments reduce principal faster.

For a simple comparison, lower rates, shorter terms, and smaller principal reduce total interest. A longer term may lower the monthly payment but usually increases total interest paid over the life of the loan.

What to check before deciding

Real loans may include origination fees, insurance, taxes, late fees, prepayment rules, or variable rates. If those apply, the displayed payment is only a starting estimate. Always compare the annual percentage rate, total repayment amount, and contract terms.

Related tools

Use Mortgage Calculator for home-loan style estimates and Compound Interest Calculator to understand how interest grows over time.