Loan Payment Calculator
Enter the loan amount, interest rate and term to see your monthly payment and how it splits between principal and interest.
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Enter the loan amount, rate and term to see the monthly payment.
Worked example
With these example inputs:
- Loan amount$25,000
- Interest rate7%
- Loan term5 yr
Monthly payment: $495.03
- Total interest$4,702
- Total of payments$29,702
- Payoff time5 yr
Frequently asked questions
How is a loan payment calculated?
The loan amount, monthly rate and number of payments feed a standard amortization formula. A $25,000 loan at 7% over 5 years costs about $495 a month.
What changes the monthly payment most?
The loan amount and term move it the most. A longer term lowers the monthly figure but raises total interest, while a higher rate lifts both.
What is amortization?
Each payment covers the interest plus part of the principal, and the split shifts toward principal as the balance falls.
Does a longer term mean a cheaper loan?
It lowers the monthly payment but raises the total interest, so the loan costs more overall.
How do extra payments help?
Paying extra toward the principal shortens the term and cuts total interest, with the biggest effect early on.