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Loan Payment Calculator

Finance Β· Free tool

Loan Payment Calculator

Before signing a term loan or equipment financing, a business owner or CFO needs the monthly payment and what the loan really costs in interest. This calculator takes the principal, the annual interest rate, and the term in months, and returns the fixed payment of a standard amortizing loan together with total interest and total repaid.

Your entries stay in this browser. Use Fill example to see a finished page first.

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What this finance tool gives you

Three figures come back: the monthly payment, total interest, and total paid. They are exactly what a cash plan or a lender comparison needs. Run two or three offers one after another to see which one costs less overall and which one is easier on monthly cash.

What you enter

  • Currency: USD by default, or EUR or GBP (only changes how amounts are formatted)
  • Principal: the amount borrowed
  • Annual interest rate, %: the nominal yearly rate, zero or more
  • Months: the loan term in months, at least 1

Worked example

The tool's example borrows $10,000 at a 6% annual rate over 12 months. The monthly rate is 0.5%, which gives a fixed payment of $860.66. Twelve payments add up to $10,327.92, so the loan costs $327.92 in total interest, about 3.3% of the amount borrowed.

How is a monthly loan payment calculated?

The monthly rate r is the annual rate Γ· 12 Γ· 100. The payment = principal Γ— r Γ— (1 + r)^n Γ· ((1 + r)^n βˆ’ 1), where n is the number of months. That is the standard formula for a loan repaid in equal monthly installments. If the rate is zero, the payment is simply principal Γ· months.

The payment is rounded to the cent. Total paid = rounded payment Γ— months, and total interest = total paid βˆ’ principal. Fees, balloon payments, and variable rates are not included, and the result is not lending advice.

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Tips before you use the result

  1. Compare offers on total interest as well as the monthly payment; a longer term lowers the payment but usually raises the total cost.
  2. Enter the nominal annual rate. If a lender quotes an APR that includes fees, the tool's payment will not match their schedule exactly.
  3. Add the monthly payment to fixed costs in your 12-month cash projection to check the loan fits your cash path.
  4. Because the payment is rounded to the cent, total interest may differ by a few cents from a bank's final schedule.

Frequently asked questions

What is the formula for a monthly loan payment?

For an amortizing loan, the payment equals principal Γ— r Γ— (1 + r)^n Γ· ((1 + r)^n βˆ’ 1), where r is the monthly rate and n the number of months. For $10,000 at 6% over 12 months, r is 0.005 and the payment comes to $860.66. At a zero rate, the payment is the principal divided by the months.

How much interest will I pay over the life of a loan?

Multiply the monthly payment by the number of months to get the total repaid, then subtract the principal. This calculator does it for you. In the example, 12 payments of $860.66 total $10,327.92, so the interest cost is $327.92 on a $10,000 loan.

Does this loan calculator include fees or a balloon payment?

No. It assumes a plain fixed-rate loan repaid in equal monthly installments with nothing due at the end. Arrangement fees, insurance, balloon payments, and rates that change over the term are all outside the calculation, so check the lender's full schedule before you commit.

Do I have to register to use the loan payment calculator?

There is no registration. The principal, rate, and term you type are remembered only by this browser, which lets you return to a scenario later on the same device. Nothing is sent to a lender or stored on an account.

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Results depend on the figures you enter; check them against your own records before you rely on them. Last updated: September 2026 Β· Kurums editorial team.