Payment Calculator
Find your fixed monthly installment and total borrowing cost for personal loans, auto finance, or debt consolidation.
Calculate fixed monthly loan payments for personal loans, auto financing, and student debt. Computes total interest and amortization.
See also: Interest Rate Calculator, Home Loan Calculator, Refinance Calculator
How it is calculated
Monthly Payment = [P × r(1 + r)^n] ÷ [(1 + r)^n − 1]
Worked example: Financing a $20,000 Auto Loan for 5 Years at 6.9%
$20,000 vehicle loan, 60-month term, 6.90% annual percentage rate.
- Determine monthly rate: 6.90% ÷ 12 = 0.575% per month (0.00575).
- Calculate monthly payment factor: (0.00575 × (1.00575)^60) ÷ ((1.00575)^60 − 1) = 0.019752.
- Multiply principal: $20,000 × 0.019752 = $395.04 per month.
- Calculate total payments: $395.04 × 60 months = $23,702.40.
- Deduct principal: $23,702.40 − $20,000 = $3,702.40 in total finance interest.
$395.04 monthly payment with $3,702.40 in total finance charges.
How to Use This Calculator (Step-by-Step)
- Enter the net loan amount borrowed.
- Specify the annual percentage rate (APR) agreed in the finance agreement.
- Choose the repayment duration in months.
- Examine the resulting monthly commitment to check affordability within your monthly budget.
Frequently asked questions
How does loan term length affect total cost?
Shorter terms require higher monthly payments but dramatically lower the total interest you pay over time. Longer terms offer smaller monthly installments but cost more overall.
What is APR vs interest rate?
The interest rate represents the base cost of borrowing money. The APR (Annual Percentage Rate) incorporates both the interest rate and any upfront origination fees or lender points, reflecting the true cost of credit.
What happens to my monthly payment if I choose a longer loan term?
Spreading the same loan amount over more months lowers the monthly payment, because the calculator divides the balance across 12 to 84 monthly payments. The trade-off is more total interest, since interest accrues for longer.
Does this calculator include lender fees or insurance?
No. The inputs are only the loan amount, the annual percentage rate, and the term in months, so the result is the fixed monthly installment and total borrowing cost on those figures alone. Check your finance agreement for any separate fees.
What rate should I enter in the APR field?
Enter the annual percentage rate agreed in your finance agreement, as the how-to steps direct. The APR reflects the true cost of credit, including the interest rate plus upfront origination fees or lender points.
Can I use this calculator for debt consolidation?
Yes. Enter the total amount you would borrow to consolidate, the APR offered, and the term in months, and the calculator shows the fixed monthly installment and the total cost of that consolidated loan.