Formula
Loan payment formula
Monthly payment = principal x monthly rate / (1 - (1 + monthly rate)^-months)Extra payments are applied after the required amortized payment to estimate faster payoff and interest savings.
Money Calculators
Loan Payment Calculator
Use this loan payment calculator to estimate monthly payments, total interest, and total paid over the life of a loan.
Reviewed May 25, 2026EstimateFormula shown
Live calculator
Loan payment
Monthly payment$500.95
$500.95 required payment plus extra payment.
Total interest$5,056.92
Estimated over 60 monthly payments.
Interest saved$0.00
Compared with paying only $500.95 per month.
What changes when you pay extra
The required payment is $500.95. With the extra amount entered, the payoff estimate uses $500.95 per month and finishes in 60 months instead of the scheduled 60 months.
Payoff summary
Shows how extra payments affect time and total interest.
| Measure | Estimate |
|---|---|
| Loan amount | $25,000.00 |
| Monthly payment used | $500.95 |
| Payoff time | 60 months |
| Total paid | $30,056.92 |
| Interest saved | $0.00 |
Amortization preview
Annual principal, interest, and remaining balance.
| Year | Principal | Interest | Ending balance |
|---|---|---|---|
| Year 1 | $4,281.58 | $1,729.81 | $20,718.42 |
| Year 2 | $4,613.97 | $1,397.42 | $16,104.46 |
| Year 3 | $4,972.16 | $1,039.22 | $11,132.29 |
| Year 4 | $5,358.16 | $653.22 | $5,774.13 |
| Year 5 | $5,774.13 | $237.25 | $0.00 |
How to use
Steps
- Enter the loan amount.
- Enter the annual interest rate.
- Enter the loan term in years.
- Add an optional extra monthly payment to estimate payoff time and interest savings.
Example
Sample calculation
Loan amount$25,000
Rate and term7.5% for 5 years
Monthly payment$500.95
Total interest$5,056.92
Calculator use
Best for
- Quick monthly payment from loan amount, interest rate and loan term.
- Personal finance scenarios before changing a budget, loan, savings goal, or purchase plan.
- Monthly cash flow, affordability, debt payoff, or future-value estimates.
- Assumption checks before talking with a lender, tax preparer, employer, or financial professional.
Before relying on it
Check first
- Entering loan amount, interest rate and loan term from different time periods or scenarios.
- Mixing gross income, take-home income, one-time costs, and monthly costs in the same comparison.
- Forgetting taxes, fees, insurance, irregular bills, or minimum payments when using an estimate.
- Treating a planning estimate as a quote, tax filing result, approval decision, or guaranteed return.
Benchmarks
How to read the result
The calculator is a decision aid, not a fixed rule. Use the output to compare scenarios and document your assumptions.
PaymentCash-flow check
A manageable monthly payment still needs to fit the rest of the budget.
Total interestTrue cost
The amortization table shows how much interest accumulates over the term.
Extra principalPayoff lever
Extra monthly principal can shorten the payoff schedule and reduce interest.
Calculator accuracy
Methodology and assumptions
The formula, inputs, example, and limitations are shown so the result is checkable, not just a number in a box.
Formula
Monthly payment = principal x monthly rate / (1 - (1 + monthly rate)^-months)
Inputs used
Loan amount, Interest rate, Loan term, Extra payment
Limitations
Results are estimates for quick planning and should be checked before important financial, legal, tax, health, or business decisions.
Last reviewed
May 25, 2026
Cite this page
Toolkit Shelf. Loan Payment Calculator. Retrieved May 25, 2026, from https://toolkitshelf.com/tools/loan-payment-calculator
FAQ
Common questions
How is a loan payment calculated?
For an amortized loan, the payment is based on principal, monthly interest rate, and number of monthly payments.
Does this include taxes or fees?
No. This calculator estimates principal and interest only, unless you include fees in the loan amount.
What does extra monthly payment mean?
Extra monthly payment is added to the required payment and applied to principal, which can shorten the loan and reduce total interest.
Why does the amortization table matter?
It shows how each year shifts from mostly interest toward more principal, which helps compare term length and extra-payment scenarios.