Payment Calculator

Calculate Payment

Choose a mode and enter your loan details

Choose a mode, enter numbers, then press Calculate. Results are shown instantly.

Loan Amount ($)

Annual Interest Rate (%)

Loan Term

Payment Frequency

Results & Actions

Calculate and view your payment details

Payment Amount

$471.78

Total Payments

$28,306.80

Total Interest

$3,306.80

Loan Term

60 months

First 12 Payments

Payment #	Payment Amount	Principal	Interest	Remaining Balance

How It Works

Select one of three calculation modes, enter your loan details, and get instant results. Our calculator uses standard amortization formulas for accuracy.

Common Uses

Calculate mortgage payments, auto loans, personal loans, student loans, and any other financing payments with this versatile tool.

Always Accessible

Works completely in your browser - no data sent to servers. Use it anytime, anywhere with full privacy protection.

Payment Calculation Formulas

Regular Payment Calculation

PMT = P × [i(1 + i)^n] / [(1 + i)^n – 1]

P = principal amount, i = periodic interest rate, n = total number of payments

Total Payment Over Loan Term

Total Payment = PMT × n

PMT = payment amount per period, n = total number of payments

Payment Term Calculation (finding n)

n = log(PMT / (PMT - P × i)) / log(1 + i)

P = principal amount, i = periodic interest rate, PMT = payment amount, log = natural logarithm

Step-by-Step Examples

Auto Loan Payment

$25,000 at 4.5% APR for 60 months → (0.00375 × 25000 × 1.251) / (1.251 - 1)

Monthly payment: $467.25

Mortgage Comparison

$300,000 at 4% for 30 years → (0.00333 × 300000 × 3.243) / (3.243 - 1)

Monthly payment: $1,432.25

Furniture Financing

$3,000 at 0% for 24 months → 3000 ÷ 24

Monthly payment: $125.00

Understanding Payment Calculations

Payment calculations are essential for anyone considering financing options, whether for a home, car, education, or personal expenses. Understanding how payments are calculated helps you make informed financial decisions and avoid overcommitting to debt.

What is a Payment Calculator?

A payment calculator is a financial tool that determines periodic payments for loans based on principal amount, interest rate, and loan term. It helps you understand the true cost of borrowing by showing not just the monthly payment, but also total interest paid over the life of the loan.

Core Components of Payment Calculations

Every loan payment consists of three key elements:

Principal: The original amount borrowed
Interest: The cost of borrowing, calculated as a percentage of the remaining balance
Term: The length of time over which the loan will be repaid

How Amortization Works

Most loans use amortization, which means early payments consist mostly of interest, while later payments go increasingly toward principal. This is why paying extra early in the loan term can significantly reduce total interest paid.

Practical Example: Buying a Car

Imagine you're purchasing a $25,000 car with a 5-year loan at 5% interest. The calculator helps you understand the complete financial picture.

Monthly Payment Calculation

Calculator Input:

Loan Amount: $25,000
Interest Rate: 5%
Loan Term: 60 months

Calculator Output:

Monthly Payment: $471.78
Total Payments: $28,306.80
Total Interest: $3,306.80

Impact of Extra Payments

If you pay an extra $50 per month, you'll:

Pay off the loan 9 months early
Save $766 in total interest

Frequently Asked Questions

What's the difference between interest rate and APR?

The interest rate is the cost of borrowing principal. APR includes interest plus fees, giving a more complete cost picture. Always compare APRs when shopping for loans.

How does payment frequency affect total cost?

More frequent payments (bi-weekly vs. monthly) reduce total interest paid because you're paying down principal faster. This can shorten your loan term significantly.

Why do early payments mostly cover interest?

Lenders calculate interest based on remaining balance. With a large initial balance, interest charges are highest early in the loan term, which is standard amortization.

Can I calculate payments for irregular income?

Yes. Use the calculator to find your required payment, then divide by your pay periods to determine what percentage of each paycheck should go toward the payment.

How do extra payments affect my loan?

Extra payments directly reduce principal, lowering future interest charges. Even small extra payments can shorten your loan term by months or years.

What if my interest rate changes during the loan?

For variable-rate loans, recalculate whenever rates change. Fixed-rate loans maintain the same payment throughout the term, providing predictable budgeting.