Loan Payment Calculator
Estimate the monthly payment and total cost of a fixed-rate installment loan. Include the origination fee and how it is collected to see whether the loan delivers the cash you need.
Fixed-rate monthly model. Check the lender disclosure for its exact APR, fee treatment and final payment.
Enter the interest rate, not a fee-inclusive APR
The payment calculation needs the contractual annual interest rate. If the lender quotes an APR that includes fees, ask for the underlying interest rate before also entering those fees. Otherwise, the estimate can count some costs twice.
For closed-end loans, the amount-financed and finance-charge disclosures explain costs that may not be obvious from the note amount alone. Regulation Z
With a deducted fee, the principal stays the same but the cash received falls. With a financed fee, the payment balance rises. With an upfront fee, the payment balance is unchanged but the fee adds to the out-of-pocket cost.
| Input | Meaning |
|---|---|
| Principal | Loan amount before the fee adjustment selected below |
| Interest rate | Contractual annual interest rate |
| Months | Number of equal monthly payment periods |
| Fee | Dollar amount charged at origination |
| Fee treatment | Deducted from proceeds, financed on top, or paid separately upfront |
Compare payment relief with total cost
This hypothetical example starts with $10,000, a fixed 12% interest rate, and a $500 deducted fee. Net proceeds are $9,500 in both cases.
The longer term lowers the monthly payment but costs about $1,389.52 more. Compare that difference with what the lower payment makes possible in your budget.
| Term | Monthly payment | Total payments | Interest plus fee |
|---|---|---|---|
| 36 months | $332.14 | $11,957.15 | $2,457.15 |
| 60 months | $222.44 | $13,346.67 | $3,846.67 |
How the calculation works
For a positive interest rate, the equal payment is P × r ÷ [1 − (1 + r)^−n], where P is the repayment principal after any financed fee, r is the annual interest rate divided by 12, and n is the number of months. Enter the annual rate as a decimal in the formula.
At zero interest, payment is simply P/n. Total interest is the sum of unrounded scheduled payments minus repayment principal. Total borrowing cost also includes the origination fee, counted once.
Displayed payments are rounded to cents. Totals use the unrounded payment, so multiplying the displayed payment by the number of months can differ by a few cents. Actual lenders may adjust the final payment and use different accrual conventions.
What the estimate leaves out
The model does not include variable-rate changes, irregular first periods, late charges, optional insurance, balloon payments, precomputed interest, or prepayment charges. Check the lender's actual disclosures for these terms. Personal-loan fees vary by offer. CFPB fee guide
Before accepting a loan, compare the modeled net proceeds with the expense you need to fund. For the full offer checklist, read how personal loans work.
How to calculate the payment for a loan
For a fixed-rate loan with equal monthly payments, the model uses payment = principal × monthly rate ÷ (1 − (1 + monthly rate) raised to the negative number of payments). The monthly rate is the annual interest rate divided by 12. At zero interest, payment is simply principal divided by the number of months.
As an illustration, borrowing $10,000 at a fixed 12% annual interest rate for 36 months produces a monthly payment of about $332.14 and about $1,957.15 in total interest before fees. The displayed schedule may differ slightly because of rounding. Daily-interest loans, irregular first payments and contractual fees require the lender’s schedule.
Check the amount you receive as well as the amount you repay
If a $10,000 loan has an illustrative 5% fee deducted at funding, you receive $9,500 while the scheduled payment can still be based on $10,000. Do not enter a fee-inclusive APR as the interest rate and also deduct the same fee again. Compare net proceeds, payment, term and total cost across offers.
A smaller payment obtained by adding months is a different bargain from a lower interest rate on the same term. Test both cases in the calculator and leave room for other required bills before choosing a repayment plan.