Payment Calculator – Loan Payment & Amortization Calculator

  • Adam
  • November 2, 2025

Calculate monthly payment or loan term. Use our payment calculator for mortgages, auto loans, and fixed-rate loans with amortization schedule.

💰 Payment Calculator

Calculate Monthly Payments or Loan Terms for Fixed Interest Loans

The Payment Calculator can determine the monthly payment amount or loan term for a fixed interest loan. Use the "Fixed Term" tab to calculate the monthly payment of a fixed-term loan. Use the "Fixed Payments" tab to calculate the time to pay off a loan with a fixed monthly payment. For more information about or to do calculations specifically for car payments, please use the Auto Loan Calculator. To find net payment of salary after taxes and deductions, use the Take-Home-Pay Calculator.

years
%

Monthly Payment:

Monthly Payment:
$0.00
You will need to pay $0.00 every month for 0 years to payoff the debt.
Total of Payments
$0.00
Total Interest
$0.00
Principal vs Interest
Principal: 0%
Interest: 0%

Amortization Schedule

Year Interest Principal Ending Balance
Month Payment Principal Interest Balance
Balance Over Time
Payment Breakdown
%

Loan Term:

Time to Pay Off:
0 Years 0 Months
You will need to make payments for this duration to fully pay off the loan.
Total of Payments
$0.00
Total Interest
$0.00
Principal vs Interest
Principal: 0%
Interest: 0%

Amortization Schedule

Year Interest Principal Ending Balance
Month Payment Principal Interest Balance
Balance Over Time
Payment Breakdown

📘 What is a Payment Calculator?

A Payment Calculator is a versatile financial tool that helps borrowers understand the relationship between loan amounts, interest rates, payment amounts, and loan terms. Unlike simple loan calculators that only work in one direction, this calculator can solve for different variables depending on what information you have available.

The calculator operates in two modes:

  • Fixed Term Mode: When you know how long you want to take to pay off the loan (the term), the calculator determines what your monthly payment will be. This is ideal for mortgages, auto loans, and other installment loans where the repayment period is predetermined.
  • Fixed Payments Mode: When you know how much you can afford to pay each month, the calculator determines how long it will take to pay off the loan. This is perfect for budget planning and understanding how increasing or decreasing your payment amount affects the payoff timeline.

Both modes provide comprehensive amortization schedules showing exactly how each payment is split between principal and interest, helping you understand the true cost of borrowing over time.

🔢 Formulas & Methodology

Fixed Term Calculation (Calculate Monthly Payment)

When you know the loan amount, term, and interest rate, the monthly payment is calculated using the standard amortization formula:

Monthly Payment Formula
M = P × [ r(1+r)^n ] / [ (1+r)^n - 1 ]

Where:

  • M = Monthly payment amount
  • P = Principal loan amount
  • r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
  • n = Total number of payments (years × 12)
Total Interest Calculation
Total Interest = (M × n) - P

The total interest is the difference between all payments made and the original principal borrowed.

Fixed Payments Calculation (Calculate Loan Term)

When you know the loan amount, monthly payment, and interest rate, the number of months needed to pay off the loan is calculated by rearranging the amortization formula:

Number of Payments Formula
n = -log(1 - (P × r / M)) / log(1 + r)

Where:

  • n = Number of monthly payments needed
  • P = Principal loan amount
  • r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
  • M = Monthly payment amount
  • log = Natural logarithm

Amortization Schedule Calculations

For each payment period, the calculator determines how much goes toward interest and principal:

Interest Payment for Period k
Interest_k = Remaining_Balance × (r)
Principal Payment for Period k
Principal_k = M - Interest_k
Remaining Balance After Payment k
Remaining_Balance_k = Remaining_Balance_(k-1) - Principal_k

📖 How to Use This Payment Calculator

Using Fixed Term Mode (Calculate Monthly Payment)

Step 1: Select Fixed Term Tab

Click on the "Fixed Term" tab if it's not already selected. This mode is used when you know the loan term and want to calculate the monthly payment.

Step 2: Enter Loan Amount

Input the total amount you're borrowing. The calculator accepts formatted currency (e.g., $200,000) or plain numbers. For example, enter $250,000 for a home loan or $30,000 for an auto loan.

Step 3: Enter Loan Term

Specify how many years you want to take to pay off the loan. Common terms include 15 or 30 years for mortgages, 3-7 years for auto loans, and 10-25 years for student loans.

Step 4: Enter Interest Rate

Input the annual interest rate as a percentage. For example, if your lender quotes 6.5% APR, enter 6.5. Don't convert to decimal - the calculator handles that automatically.

Step 5: Click Calculate

Press the green "Calculate" button. The calculator will immediately display your monthly payment, total amount you'll pay over the loan term, total interest, and a visual breakdown.

Step 6: Review Amortization Schedule

Scroll down to see the complete amortization schedule. Switch between "Annual Schedule" to see year-by-year totals or "Monthly Schedule" to see every individual payment breakdown.

Using Fixed Payments Mode (Calculate Loan Term)

Step 1: Select Fixed Payments Tab

Click on the "Fixed Payments" tab. Use this mode when you know how much you can afford to pay each month and want to find out how long it will take to pay off the loan.

Step 2: Enter Loan Amount

Input the total amount you're borrowing, just like in Fixed Term mode.

Step 3: Enter Monthly Payment

Specify how much you can afford to pay each month. The calculator will determine how long it takes to pay off the loan with this payment amount. For example, if you can budget $2,000/month for a mortgage, enter that amount.

Step 4: Enter Interest Rate

Input the annual interest rate as a percentage.

Step 5: Calculate and Review Results

Click Calculate to see how many years and months it will take to pay off the loan, along with the total interest you'll pay. Review the amortization schedule to understand the payment breakdown over time.

Tips for Using the Calculator

  • Experiment with different scenarios: Try adjusting the loan term or payment amount to see how it affects total interest paid.
  • Compare options: Calculate payments for different loan terms (e.g., 15-year vs 30-year mortgage) to understand the trade-offs between monthly payment and total cost.
  • Use the amortization schedule: The detailed schedule shows exactly when your loan balance drops below certain thresholds, useful for planning refinancing or understanding equity buildup.
  • Check the visual charts: The pie chart instantly shows what percentage of your total payments go to interest vs principal, while the line charts in the schedule show how your balance decreases over time.

❓ Frequently Asked Questions

What's the difference between Fixed Term and Fixed Payments modes? ▼
Fixed Term mode calculates your monthly payment when you already know how long you want to take to repay the loan. Fixed Payments mode calculates how long it will take to repay the loan when you know how much you can afford to pay each month. Both modes calculate the same total interest and provide amortization schedules, they just solve for different variables.
How can I lower my total interest paid? ▼
There are several strategies: (1) Choose a shorter loan term - A 15-year mortgage has significantly less total interest than a 30-year mortgage, (2) Make larger monthly payments - Even $100 extra per month can save thousands in interest, (3) Shop for lower interest rates - Even 0.5% lower rate can save substantial money over time, (4) Make extra payments - Any additional payments go directly to principal and reduce future interest charges.
What is an amortization schedule and why is it important? ▼
An amortization schedule is a table that shows every payment throughout the life of the loan, breaking down how much of each payment goes toward interest and how much goes toward principal. It's important because: (1) It shows you exactly when you'll own a certain percentage of your home (equity buildup), (2) It helps you understand why early payments are mostly interest while later payments are mostly principal, (3) It allows you to plan for milestones like when you'll reach 20% equity (when you can remove PMI on mortgages), (4) It shows the impact of extra payments on your payoff timeline.
Why do my early payments go mostly toward interest? ▼
This is how amortized loans work mathematically. Interest is calculated on your remaining balance. At the beginning of the loan, your balance is highest, so interest charges are highest. As you pay down the principal, your balance decreases, so interest charges decrease and more of each payment goes toward principal. This is normal and expected - the amortization schedule shows this progression clearly. By year 10 of a 30-year loan, you'll notice much more of each payment going toward principal.
Can I use this calculator for credit card debt? ▼
Yes! Use the Fixed Payments mode to see how long it would take to pay off your credit card balance with fixed monthly payments. Enter your current balance as the "Loan Amount," your planned monthly payment, and your card's APR as the interest rate. This will show you exactly when you'll be debt-free and how much interest you'll pay. This is particularly eye-opening because credit card rates are typically very high (15-25% APR), so you'll see how much interest compounds if you only make minimum payments.
What happens if I pay extra toward my loan? ▼
Extra payments go directly toward reducing your principal balance. This has two benefits: (1) You pay off the loan faster - Use Fixed Payments mode to see how much faster, (2) You pay less total interest - Because future interest is calculated on a lower balance. For example, paying an extra $100/month on a $200,000 30-year mortgage at 6% could save you over $50,000 in interest and cut 5+ years off your loan. Use the calculator to model this: compare a standard monthly payment vs. an increased payment to see the difference.
Should I choose a 15-year or 30-year mortgage? ▼
This depends on your financial situation. 15-year mortgages have: higher monthly payments, lower total interest paid (often 50%+ less), faster equity buildup, and usually lower interest rates. 30-year mortgages have: lower monthly payments, more budget flexibility, ability to invest the payment difference elsewhere, and longer to build equity. Use the calculator to compare both options with your loan amount - you'll see the dramatic difference in total interest. Many people choose 30-year terms for the flexibility but make extra payments to effectively create a 20-year or 15-year payoff.
What is the "Total of Payments" and how is it different from the loan amount? ▼
The "Total of Payments" is the sum of all monthly payments you'll make over the entire loan term - it's the actual total amount of money that will leave your bank account. The loan amount (principal) is what you borrowed. The difference between these two numbers is the total interest you pay for the privilege of borrowing money. For example, on a $200,000 30-year mortgage at 6%, you'll pay approximately $431,676 total, meaning $231,676 in interest. The pie chart visualizes this breakdown.
How accurate is this calculator compared to my actual loan? ▼
This calculator provides mathematically accurate results for simple amortized loans. However, your actual loan may have additional factors: PMI (Private Mortgage Insurance) if you put down less than 20%, Property taxes and homeowners insurance (often bundled into mortgage payments), HOA fees, Origination fees or points, and Variable interest rates (this calculator assumes fixed rates). For the most accurate picture of your specific loan, consult your lender's Truth in Lending disclosure, but this calculator gives you the core principal and interest calculations.
What does the Annual Schedule vs Monthly Schedule show? ▼
The Annual Schedule summarizes each year of your loan, showing the total interest paid, total principal paid, and ending balance for each year. This is useful for understanding year-over-year progress and for tax purposes (mortgage interest is often tax-deductible). The Monthly Schedule shows every single payment individually, with exact breakdown of that month's interest and principal portions. Use Annual Schedule for big-picture planning and Monthly Schedule when you need payment-by-payment details.

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