Payment Calculator
Calculate monthly payment amounts for loans and installment purchases.
Loan Information
Payment Summary
$699
per month
About This Calculator
The Payment Calculator helps you determine the monthly payment amount for any loan or installment purchase. Simply enter the loan amount, interest rate, and loan term to calculate your monthly payment, total interest, and total amount paid.
This calculator uses the standard amortization formula to provide accurate payment estimates for fixed-rate loans. It works for mortgages, auto loans, personal loans, and any other installment financing.
Formula & Calculation Method
Payment Calculation Formula:
Monthly Payment = [P × R × (1+R)^N] / [(1+R)^N - 1]
Where:
P = Principal (loan amount)
R = Monthly interest rate (Annual rate ÷ 12 ÷ 100)
N = Loan term in months (Years × 12)
Total Payment = Monthly Payment × N
Total Interest = Total Payment - Principal
This formula calculates fixed monthly payments that include both principal and interest. Early payments consist mostly of interest, while later payments apply more to principal.
How to Use This Calculator
- Enter Principal: Input the loan amount or purchase price.
- Enter Interest Rate: Input the annual interest rate percentage.
- Enter Loan Term: Input the repayment period in years.
- View Results: See monthly payment, total interest, and total payment.
- Compare: Adjust rates and terms to compare different financing options.
Frequently Asked Questions
What types of payments can this calculate?
This calculator works for any fixed-rate installment loan, including mortgages, auto loans, personal loans, home equity loans, and other amortizing debts.
How do I know my interest rate?
Your interest rate (APR) is provided by the lender in your loan documents. It may be fixed (stays the same) or variable (can change). This calculator assumes a fixed rate.
What if I want to pay extra each month?
Paying extra reduces your principal faster, which reduces total interest and may shorten the loan term. This calculator shows standard payments; extra payments would require a different calculation.
Does this include insurance and taxes?
This calculator shows only the principal and interest payment. For mortgages, property taxes, homeowners insurance, and PMI are typically added to create the total monthly payment (PITI).
Expert Reviewed
This calculator was reviewed by NumCalculators Editorial Team, Multi-disciplinary Expert Team