finance calculator
Calculate loan payments, total interest cost, and the full payoff schedule for personal, auto, or business loans in seconds.
A loan payment is the fixed amount that fully repays principal plus interest over the term. It is calculated as P × [r(1+r)^n] ÷ [(1+r)^n − 1], where r is the periodic rate and n the number of payments. A $25,000 loan at 7% over 5 years costs about $495 per month, totalling roughly $4,700 in interest.
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Monthly payment
$495
Tip
Lender quotes change frequently. Save this page to quickly verify monthly costs, amortization breakdowns, or total lifetime borrowing costs.
Formula
Payment = P x (r(1+r)^n / ((1+r)^n - 1))This standard amortization formula calculates a fixed payment from principal, monthly rate, and payment count.
Step by step
Example
A $25,000 loan at 7% for 5 years produces an estimated payment near $495 per month, with total interest shown separately so the full borrowing cost is clear.
Related guides
Guide
Learn how fixed loan payments are calculated, why term length changes total interest, and how the DTC loan calculator matches amortization math.
Guide
Compare debt snowball and avalanche payoff methods, see how ordering changes interest and timing, and model both with the DTC calculator.
This calculator implements published formulas. Each source below is the primary reference for a specific part of the calculation, so you can verify the result independently.
Consumer Financial Protection Bureau
APR definition and the standard amortizing payment formula used for periodic payments.
Read how we select formulas, review calculations, and handle corrections in our methodology. Found an error? Tell us and we will correct it and note the change.
Summary
Monthly payment
$495
Estimated fixed payment.
Total interest
$4,702
Cost above principal.
Total repaid
$29,702
60 scheduled payments.
Loan principal
$25,000
Original amount borrowed.
D3 visualization
See how the total repayment splits between the amount borrowed and interest cost.
D3 visualization
A sampled view of the full loan term shows the outstanding balance declining to zero.
Full amortization schedule
Monthly view shows the full exact schedule. Quarterly and yearly views summarize the same monthly schedule. Weekly view is a weekly equivalent split for quick planning.
Swipe sideways to view all columns.
Scroll within the table to see every row, or switch to Yearly above for a shorter one-row-per-year summary.
| Period | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| Month 1 | $495 | $349 | $146 | $24,651 |
| Month 2 | $495 | $351 | $144 | $24,300 |
| Month 3 | $495 | $353 | $142 | $23,946 |
| Month 4 | $495 | $355 | $140 | $23,591 |
| Month 5 | $495 | $357 | $138 | $23,234 |
| Month 6 | $495 | $360 | $136 | $22,874 |
| Month 7 | $495 | $362 | $133 | $22,512 |
| Month 8 | $495 | $364 | $131 | $22,149 |
| Month 9 | $495 | $366 | $129 | $21,783 |
| Month 10 | $495 | $368 | $127 | $21,415 |
| Month 11 | $495 | $370 | $125 | $21,045 |
| Month 12 | $495 | $372 | $123 | $20,673 |
| Month 13 | $495 | $374 | $121 | $20,298 |
| Month 14 | $495 | $377 | $118 | $19,921 |
| Month 15 | $495 | $379 | $116 | $19,543 |
| Month 16 | $495 | $381 | $114 | $19,162 |
| Month 17 | $495 | $383 | $112 | $18,778 |
| Month 18 | $495 | $385 | $110 | $18,393 |
| Month 19 | $495 | $388 | $107 | $18,005 |
| Month 20 | $495 | $390 | $105 | $17,615 |
| Month 21 | $495 | $392 | $103 | $17,223 |
| Month 22 | $495 | $395 | $100 | $16,828 |
| Month 23 | $495 | $397 | $98 | $16,431 |
| Month 24 | $495 | $399 | $96 | $16,032 |
| Month 25 | $495 | $402 | $94 | $15,631 |
| Month 26 | $495 | $404 | $91 | $15,227 |
| Month 27 | $495 | $406 | $89 | $14,821 |
| Month 28 | $495 | $409 | $86 | $14,412 |
| Month 29 | $495 | $411 | $84 | $14,001 |
| Month 30 | $495 | $413 | $82 | $13,588 |
| Month 31 | $495 | $416 | $79 | $13,172 |
| Month 32 | $495 | $418 | $77 | $12,754 |
| Month 33 | $495 | $421 | $74 | $12,333 |
| Month 34 | $495 | $423 | $72 | $11,910 |
| Month 35 | $495 | $426 | $69 | $11,485 |
| Month 36 | $495 | $428 | $67 | $11,057 |
| Month 37 | $495 | $431 | $64 | $10,626 |
| Month 38 | $495 | $433 | $62 | $10,193 |
| Month 39 | $495 | $436 | $59 | $9,757 |
| Month 40 | $495 | $438 | $57 | $9,319 |
| Month 41 | $495 | $441 | $54 | $8,879 |
| Month 42 | $495 | $443 | $52 | $8,435 |
| Month 43 | $495 | $446 | $49 | $7,990 |
| Month 44 | $495 | $448 | $47 | $7,541 |
| Month 45 | $495 | $451 | $44 | $7,090 |
| Month 46 | $495 | $454 | $41 | $6,636 |
| Month 47 | $495 | $456 | $39 | $6,180 |
| Month 48 | $495 | $459 | $36 | $5,721 |
| Month 49 | $495 | $462 | $33 | $5,259 |
| Month 50 | $495 | $464 | $31 | $4,795 |
| Month 51 | $495 | $467 | $28 | $4,328 |
| Month 52 | $495 | $470 | $25 | $3,858 |
| Month 53 | $495 | $473 | $23 | $3,386 |
| Month 54 | $495 | $475 | $20 | $2,910 |
| Month 55 | $495 | $478 | $17 | $2,432 |
| Month 56 | $495 | $481 | $14 | $1,952 |
| Month 57 | $495 | $484 | $11 | $1,468 |
| Month 58 | $495 | $486 | $9 | $981 |
| Month 59 | $495 | $489 | $6 | $492 |
| Month 60 | $495 | $492 | $3 | $0 |
Guide
Enter the loan principal, the annual interest rate, and the term in years. The calculator applies standard fixed-rate amortization to return your monthly payment, total payment, and total interest over the life of the loan.
Principal $25,000, annual interest rate 7%, term 5 years (60 monthly payments).
Monthly payment: ≈ $495.03.
Total payment over 5 years: ≈ $29,701.80.
Total interest paid: ≈ $4,701.80 — about 18.8% on top of the original principal at this rate and term. Stretching the same loan to 7 years would lower the monthly payment but increase total interest paid, the standard trade-off behind every loan term decision.
An installment loan is a closed-end borrowing agreement where a fixed principal amount is advanced to the borrower and repaid over a set term with equal periodic payments. Understanding this structure is essential for personal loans, auto financing, and consumer installment plans.
Unlike revolving credit (such as credit cards), installment loans have a defined end date. Each monthly payment is split between covering the interest accrued on the remaining balance and paying down the principal. In the early months, because the principal balance is high, a larger portion of the payment goes toward interest. In the later months, the ratio reverses, accelerating equity pay-down.
To calculate the exact monthly payment required for a fixed-rate amortizing loan, lenders apply standard interest amortization math:
PMT = P × (r(1 + r)^n)/((1 + r)^n - 1)
Where:
* PMT is the equal monthly payment.
* P is the principal loan amount borrowed.
* r is the monthly interest rate (Annual Percentage Rate divided by 12 months).
* n is the total number of monthly payments (Term Years multiplied by 12).
This equation ensures the loan is exactly paid to zero by the final month. It shows why extending the loan term (e.g., from 3 to 5 years) reduces the monthly payment but directly increases the total interest paid, as interest is given more time to compound on the outstanding balance.
The sticker price of a loan is not its true cost. The actual cost is the principal plus the total interest accrued over the life of the loan. This tool calculates both, showing the interest drag.
Borrowers often negotiate monthly payments instead of total interest. Lenders can easily meet a monthly payment target by extending the term, which dramatically inflates the total amount paid. Always verify the Total Repayment and Annual Percentage Rate (APR) before signing.
When comparing personal loans, verify the Origination Fee, which ranges from 1% to 8% and is often deducted from the loan payout, meaning you receive less cash than you borrow.
Also, check for Prepayment Penalties (fees charged if you pay off the loan early). Selecting a loan with no prepayment penalty allows you to make extra payments toward the principal, cutting total interest costs and accelerating your debt-free timeline.
Use the payment calculator to model prepayments and alternate payment frequencies, or the debt payoff calculator if you are juggling this loan alongside credit cards or other balances.
APR
Annual Percentage Rate: the complete annual cost of borrowing including fees.
Amortization
The mathematical breakdown of debt payments into principal and interest over a fixed timeline.
Origination Fee
An upfront processing fee deducted from the loan payout by the lender.