Loan Payment Calculator

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

By Konstantin Iakovlev · Updated April 2026 · Source: CFPB — Consumer Tools

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%

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 DateJuly 20, 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

Knowing what a loan will cost each month before you sign is the foundation of any honest budget. This tool estimates that fixed payment for nearly any loan and lets you line up competing offers against each other. The stakes are real in the year ahead: consumer borrowing costs are projected to average around 7.5% for personal loans and 6.8% for new car loans in 2026, so running the numbers carefully separates an affordable deal from a strained one.

Behind the result sits the standard amortization formula, P = [r * PV] / [1 - (1 + r)^-n]. P is the monthly payment, r is the monthly interest rate (the annual rate divided by 12), PV is the present value or principal loan amount, and n is the total number of payments, which equals the loan term in years multiplied by 12. Structured this way, the formula spreads both principal and interest evenly across the full life of the loan.

Treat the output as an estimate rather than a final figure. It leaves out origination charges, closing costs, and escrow, any of which can push your real monthly outlay higher. There is also a trap worth naming: fixating on the monthly payment alone hides the total interest you pay over time, and stretching the term lowers each payment while quietly inflating that total. Confirm the exact terms with your lender before you commit to anything.

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.