How to calculate loan payments
- Enter the loan amount, annual interest rate and term in years or months.
- Choose how the loan is repaid: equal payments, equal principal or interest only.
- Check the monthly payment and total interest, and open the schedule to see each month.
Frequently asked questions
How is the monthly payment calculated?
For equal payments the formula is P × r ÷ (1 − (1 + r)^−n), where P is the amount, r the monthly rate (annual rate ÷ 12) and n the number of months.
Which repayment type costs less?
Equal principal pays the least interest because the balance drops fastest, but the first payments are higher. Interest only costs the most.
Does it include fees, insurance or taxes?
No. It covers principal and interest only. Add origination fees, insurance and property taxes separately.
Why does the last payment differ slightly?
Payments are rounded for display, and the last month clears whatever balance is left, so it can be off by a few units.
Which currency does it use?
Any. Enter the amount in your own currency and the results come out in the same currency.