Loan Payment Calculator
Calculate monthly loan payments for any loan type with our free payment calculator. See total interest, total payment amount, and monthly payment in seconds.
Category: Financial
Payment Calculator
Frequently Asked Questions
How do I calculate my monthly loan payment?
To calculate a monthly loan payment, you need three key pieces of information: the loan amount (principal), the annual interest rate, and the loan term in years. Our calculator automatically applies the formula: Payment = 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.
How does the loan term affect my monthly payment?
A longer loan term (more years) results in lower monthly payments but higher total interest paid over the life of the loan. A shorter loan term leads to higher monthly payments but less total interest paid. For example, a 30-year mortgage will have much lower monthly payments than a 15-year mortgage, but you'll pay significantly more in interest over the full 30 years.
Why does my loan calculator result differ from my lender's quote?
Differences between calculator results and lender quotes may be due to: 1) Additional fees not included in the basic calculation (origination fees, insurance, taxes), 2) Different compounding methods, 3) Rounding differences, or 4) Special loan terms. Our calculator provides a good estimate, but your actual payment may include additional costs specific to your lender.