Finance

Loan Payment Calculator

Enter your loan amount, interest rate, and term to see your exact payment, total interest paid, and full amortization breakdown. Switch payment frequency between monthly, bi-weekly, and weekly, add an extra payment to see how much interest you save and how many months you shave off, or reverse-solve to find the loan amount that fits a payment you can afford. Your results update as you type.

By Sarah Klein, CFP · Updated August 19, 2026

Your details

Calculate

Loan amount

Annual interest rate

Loan term

years

Payment frequency

Extra payment per period

Currency

Periodic paymentModerate rate

$489.15

Your required payment each period (before any extra amount)

Total of payments$29,349.22

Total interest paid$4,349.22

Total loan cost$29,349.22

Periodic interest rate0.5417%

Annual rate (APR)6.5%

Total payments$29,349.22

Total interest$4,349.22

Interest saved (extra)-

Years

Remaining balance
Years	Balance
$0.1	$25k
$0.2	$24k
$0.3	$24k
$0.3	$24k
$0.4	$23k
$0.5	$23k
$0.6	$22k
$0.7	$22k
$0.8	$22k
$0.8	$21k
$0.9	$21k
$1.0	$21k
$1.1	$20k
$1.2	$20k
$1.3	$19k
$1.3	$19k
$1.4	$19k
$1.5	$18k
$1.6	$18k
$1.7	$18k
$1.8	$17k
$1.8	$17k
$1.9	$16k
$2.0	$16k
$2.1	$16k
$2.2	$15k
$2.3	$15k
$2.3	$14k
$2.4	$14k
$2.5	$14k
$2.6	$13k
$2.7	$13k
$2.8	$12k
$2.8	$12k
$2.9	$11k
$3.0	$11k
$3.1	$11k
$3.2	$10k
$3.3	$10k
$3.3	$9k
$3.4	$9k
$3.5	$8k
$3.6	$8k
$3.7	$7k
$3.8	$7k
$3.8	$7k
$3.9	$6k
$4.0	$6k
$4.1	$5k
$4.2	$5k
$4.3	$4k
$4.3	$4k
$4.4	$3k
$4.5	$3k
$4.6	$2k
$4.7	$2k
$4.8	$1k
$4.8	$970
$4.9	$487
$5.0	$0.0

Your monthly payment is 489.15.

Your monthly payment is 489.15 in your chosen currency.
Interest adds 17% on top of the principal, bringing your total loan cost to 29,349.
Try adding an extra payment amount to see how much interest you can save.

Next stepCheck the amortization schedule below to see exactly how each payment splits between principal and interest.

Convert annual rate to periodic rate (12 periods/year)6.5% / 100 / 12
0.005417 per period
Determine total number of payments5 years × 12 periods/year
60 payments
Compute (1+r)^n(1 + 0.005417)^60
1.382817
Apply amortization formula: PMT = P × r × (1+r)^n / ((1+r)^n - 1)25000.00 × 0.005417 × 1.3828 / (1.3828 - 1)
489.15 per period
Total of all payments489.15 × 60
29349.22
Total interest = total payments minus principal29349.22 - 25000.00
4349.22

Monthly Amortization Schedule (Yearly Summary)

Period	Interest paid	Principal paid	Ending balance
Year 1	1496.23	4373.62	20626.38
Year 2	1203.32	4666.53	15959.86
Year 3	890.79	4979.05	10980.81
Year 4	557.34	5312.51	5668.30
Year 5	201.55	5668.30	0.00

Balances may differ by a cent due to rounding. Values are in your chosen currency.

Formula

PMT = P \times \dfrac{r(1+r)^n}{(1+r)^n - 1}

Worked example

A $25,000 loan at 6.5% APR for 5 years (monthly payments): periodic rate = 6.5% / 12 = 0.541667% per month, n = 60 payments. PMT = 25000 x 0.005417 x (1.005417)^60 / ((1.005417)^60 - 1) = 25000 x 0.005417 x 1.3830 / 0.3830 = $489.15 per month. Total paid = $29,349, total interest = $4,349.

How this loan payment calculator works

Enter the loan amount, the annual interest rate (APR), the repayment term in years, and how often you plan to make payments. The calculator solves the standard amortization formula and instantly shows your periodic payment, total interest, and total cost. Switch to "Loan amount from payment" mode to reverse the formula: type in the payment you can afford and the calculator tells you the maximum you can borrow. The amortization schedule below the results shows a year-by-year breakdown of how each payment splits between interest and principal.

Payment frequency: monthly vs. bi-weekly vs. weekly

Most lenders bill monthly, but some accept bi-weekly (26 payments a year) or weekly (52 payments a year) schedules. This calculator re-amortizes the loan at whichever frequency you pick: the periodic rate becomes the APR divided by the number of payments per year, which is how Regulation Z defines the unit-period rate, and the term stays the same. Paying more often shaves only a little off the total, because the balance falls in smaller, more frequent steps. On a $250,000 mortgage at 7% over 30 years the calculator shows $348,772 in interest on a monthly schedule and $348,497 bi-weekly, a difference of about $275 across three decades. The much larger savings advertised for "bi-weekly mortgage plans" come from something else entirely: paying half the monthly amount every two weeks means 26 half-payments, which is 13 monthly payments a year instead of 12. That thirteenth payment is what cuts the term. To model it here, stay on the monthly frequency and enter one twelfth of your payment in the extra-payment field. On that same mortgage, an extra $138.60 a month saves $85,352 in interest and pays the loan off 75 months early.

How extra payments reduce your total interest

Any amount applied beyond the required payment goes straight to principal, which shrinks the balance on which future interest is calculated. On long loans this compounds dramatically: an extra $100 per month on a $25,000, 5-year car loan at 7% trims $939 in interest and pays it off 11 months early. On a 30-year mortgage the effect is far larger. Use the extra-payment field to test amounts and see the projected savings in the insight panel and the side-by-side balance chart.

Understanding the amortization schedule

Every fixed-rate loan follows the same pattern: in early periods almost all of your payment goes to interest, and only a small slice reduces the principal. As the balance falls, the interest portion shrinks and the principal portion grows, until the final payment is almost entirely principal. This front-loading of interest is why paying off or refinancing a loan early saves disproportionately more than paying it off late. The yearly summary table below shows this shift year by year for your specific numbers.

Published US loan rates (latest official figures)

Loan type	Rate	Common term	Source
30-year fixed mortgage	6.67% average	30 years	Freddie Mac PMMS, Aug 13 2026
15-year fixed mortgage	5.96% average	15 years	Freddie Mac PMMS, Aug 13 2026
Auto loan, new car, 60-month	7.14% average	60 months	Federal Reserve G.19, Jun 2026
Auto loan, new car, 72-month	6.97% average	72 months	Federal Reserve G.19, Jun 2026
Personal loan, 24-month	11.86% average	24 months	Federal Reserve G.19, Jun 2026
Federal Direct loan, undergraduate	6.52% fixed	10-25 years	US Dept. of Education, disbursed Jul 1 2026 to Jun 30 2027
Credit card, accounts assessed interest	22.15% average	Revolving	Federal Reserve G.19, Q2 2026

Survey averages and statutory rates from the issuing agencies, not quotes. Your own rate depends on credit score, lender, and market conditions.

Frequently asked questions

What is the standard loan payment formula?

The periodic payment (PMT) for a fixed-rate amortizing loan is: PMT = P x r x (1+r)^n / ((1+r)^n - 1), where P is the principal (loan amount), r is the periodic interest rate (annual rate divided by the number of payments per year), and n is the total number of payments. For a $20,000 loan at 8% APR paid monthly over 4 years: r = 8% / 12 = 0.6667% per month, n = 48 payments, PMT = $488.26 per month.

Does the interest rate in the calculator refer to APR?

Yes, enter the Annual Percentage Rate (APR). The calculator divides this by the number of payments per year to get the periodic rate. If your lender quotes a monthly rate instead, multiply it by 12 before entering it here. Note that APR and APY (annual percentage yield) are different: APY accounts for compounding within the year, while APR does not. Most loan disclosures use APR.

How is bi-weekly payment different from paying half my monthly payment every two weeks?

They are not the same thing. The bi-weekly option in this calculator re-amortizes the loan over 26 payments a year for the same term, so your annual outlay stays about the same as a monthly schedule and the interest saving is small. Paying half your monthly amount every two weeks is different: 26 half-payments equal 13 monthly payments a year instead of 12, and that thirteenth payment is what shortens the loan. To model that here, leave the frequency on monthly and put one twelfth of your monthly payment in the extra-payment field. Some lenders also charge a fee to set up bi-weekly billing, so check the terms before signing up.

Can I use this for a mortgage, car loan, or personal loan?

Yes. The amortization formula is identical for any fixed-rate installment loan. Enter the loan amount, rate, and term relevant to your loan type. For a mortgage you may want to add property tax and insurance estimates separately, as they appear in your monthly bill (escrow) but are not part of the loan payment formula itself.

What if my interest rate is 0%?

At 0%, no interest accrues and each payment simply divides the principal equally across all periods. Some promotional offers (e.g., 0% auto financing or deferred-interest credit deals) work this way. Enter 0 in the rate field and the calculator handles it correctly without dividing by zero.

How do I find the maximum loan I can afford?

Switch the "Calculate" dropdown to "Loan amount from payment". Enter the payment you can comfortably afford each period, your expected rate, and the term, and the calculator solves for the largest principal that keeps your payment at or below that amount. This is useful for setting a budget before house or car shopping.

Why does most of my early payment go to interest?

Because interest is charged on the outstanding balance. At the start, the balance is at its highest, so the interest portion of each payment is largest. As you pay down the principal, the balance drops and so does the monthly interest charge, leaving more of each payment to reduce the loan. This "front-loading" is why refinancing or paying off a loan in its early years saves proportionally more interest than doing so toward the end.

Sources

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Written by Sarah Klein, CFP Certified Financial Planner · Chicago, USA

Fifteen years translating mortgage tables and amortization schedules into decisions that actually help real borrowers.

How we build & check our calculators

This tool provides general information and education, not professional advice. For decisions about your health or finances, consult a qualified professional.