Loan Payment Calculator

Calculate monthly payment for any loan amount, rate, and term.

$
%

Monthly Payment

$489.15

Total Interest

$4,349.22

Total Paid

$29,349.22

Loan Summary

Monthly Payment$489.15
Total Interest$4,349.22
Total Cost$29,349.22
Payoff DateMay 29, 2031

Use the Loan Payment Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Our Loan Payment Calculator helps you quickly determine your estimated monthly payment for virtually any loan. Understanding your monthly obligation upfront is crucial for budgeting and financial planning, especially as interest rates for consumer loans are projected to average around 7.5% for personal loans and 6.8% for new car loans in 2026, making careful calculation more important than ever. This tool empowers you to compare different loan scenarios and make informed borrowing decisions.

This calculator utilizes the standard amortization formula to determine your fixed monthly payment. The formula is P = [r * PV] / [1 - (1 + r)^-n], where P is the monthly payment, r is the monthly interest rate (annual rate divided by 12), PV is the present value or principal loan amount, and n is the total number of payments (loan term in years multiplied by 12). This ensures an accurate calculation that accounts for both principal and interest over the life of the loan.

Remember that this calculation provides an estimate and may not include additional fees like origination charges, closing costs, or escrow payments, which can increase your total monthly outlay. A common mistake is only focusing on the monthly payment without considering the total interest paid over the loan's lifetime; a longer term often means lower monthly payments but significantly more interest paid overall. Always verify the final terms with your lender before committing to any loan agreement.

Example: Buying a new car in 2026

  1. 1 Let's say you're looking to finance a new car for $35,000. Based on 2026 projections, you secure a loan with an annual interest rate of 6.8% over a 60-month (5-year) term.
  2. 2 Using our calculator, you input a loan amount of $35,000, an annual interest rate of 6.8%, and a loan term of 60 months. The calculator then applies the amortization formula: P = [0.068/12 * 35000] / [1 - (1 + 0.068/12)^-60].
  3. 3 Your estimated monthly loan payment for this car would be approximately $687.95.
  4. 4 This means you would be paying $687.95 each month for the next five years. Over the life of the loan, you would pay a total of $41,277 (principal + interest), with $6,277 being the total interest paid. This information helps you budget and understand the true cost of your car purchase.

Source: CFPB — Consumer Tools · Last updated: April 2026

Frequently Asked Questions

How is a monthly loan payment calculated?
Monthly payment = P x [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate, and n is the total number of payments. This is the standard amortization formula.
How much is the monthly payment on a $20,000 loan?
At 7% for 5 years, the monthly payment on a $20,000 loan is approximately $396. At 5% for 5 years, it drops to about $377. The rate and term significantly impact the payment amount.
How much total interest do you pay on a loan?
Multiply the monthly payment by the number of payments, then subtract the original loan amount. For example, $396/month for 60 months = $23,760 total, minus $20,000 principal = $3,760 in total interest.