About this tool
This calculator estimates the fixed monthly payment for an amortizing loan given the principal, annual interest rate, and term, using the standard amortization formula — the same math lenders use for mortgages, auto loans, and personal loans.
How to use it
- 1Enter the loan amount, annual interest rate, and term in years.
- 2Read the monthly payment, total interest, and total amount paid.
Common mistakes to avoid
- Entering a monthly rate instead of the annual rate — this calculator expects the annual percentage rate and converts it internally.
- Forgetting that this assumes a fixed rate and standard amortization — adjustable-rate or interest-only loans work differently.
Use cases
- Estimating monthly payments before applying for a loan.
- Comparing total interest cost across different loan terms.
Frequently asked questions
Does this include taxes, insurance, or fees?
No, it calculates principal and interest only, based on the standard loan amortization formula. Add any escrow, insurance, or fees separately for a full monthly cost estimate.