Loan Payment Calculator

Use the Loan Payment Calculator

Your results

Required monthly payment: $0.00
Total interest paid: $0.00
Total amount paid: $0.00
Payoff time with extra payment: 0 months
Interest saved with extra payment: $0.00

How this calculator works

What it does: Estimate a fixed-rate loan payment and see how extra monthly payments could shorten payoff time and reduce interest.
Inputs used: The estimate uses loan amount, annual interest rate (%), loan term (years), and extra monthly payment.
Calculation approach: The calculator applies the relationships defined for the loan payment calculator to those inputs and updates required monthly payment, total interest paid, total amount paid, payoff time with extra payment, and interest saved with extra payment.
How to read the result: Treat the result as a scenario based on the values entered. Compare a few reasonable inputs and consider costs, taxes, timing, or risks that the calculator does not include.

How to Use This Calculator

Enter Loan amount and Annual interest rate (%) using values that match the scenario you want to evaluate.
Enter Loan term (years) and Extra monthly payment using values that match the scenario you want to evaluate.
Review the assumptions for the loan payment calculator, especially rates, time periods, and optional amounts.
Select Calculate to update the results, then adjust one input at a time to compare scenarios.

Understanding the Results

Required monthly payment: The estimated payment or withdrawal amount produced by the current balance, rate, and time assumptions.
Total interest paid: The estimated cost created by the entered rate over the selected period.
Total amount paid: The combined amount estimated from the recurring values and time period in this scenario.
Payoff time with extra payment: The estimated time needed to reach the target under the current contribution, payment, and growth assumptions.
Interest saved with extra payment: The interest saved with extra payment estimated by the Loan Payment Calculator using loan amount, annual interest rate (%), and loan term (years) and the other values entered.

Common Mistakes

Entering an annual interest rate as a monthly rate, or leaving out fees and required payments.
Assuming the quoted monthly payment includes taxes, insurance, or other costs when it may cover principal and interest only.
Ignoring whether a payment is high enough to cover the interest added each month.
Comparing payments without also comparing payoff time and total cost.

Worked Example

Example inputs

Loan amount: $25,000
Annual interest rate (%): 8%
Loan term (years): 5
Extra monthly payment: $100

Example results

Required monthly payment: $506.91
Total interest paid: $4,325.29
Total amount paid: $29,325.29
Payoff time with extra payment: 4 years, 1 month
Interest saved with extra payment: $1,089.30

With these example payments and rates, the payoff time with extra payment is 4 years, 1 month. Actual payoff timing can change with fees, rate changes, missed payments, or additional charges.

Frequently asked questions

How is the required monthly loan payment calculated?

The calculator uses the standard fixed-rate amortization formula with the loan amount, monthly interest rate, and total number of monthly payments.

What happens when I add an extra monthly payment?

The extra amount is applied to principal each month, reducing the balance sooner and generally lowering both payoff time and total interest.

How is a 0% interest loan handled?

The required payment is simply the loan amount divided by the number of monthly payments. Extra payments shorten the term but do not create interest savings.

What does total amount paid include?

It includes principal and interest under the accelerated schedule. Origination fees, late fees, insurance, taxes, and other lender charges are not included.

Can I use this for auto, personal, or student loans?

It can estimate any fixed-rate, fully amortizing loan with monthly payments. Loans with variable rates, deferred interest, balloon payments, or unusual fees need a different model.

What does the Loan Payment Calculator calculate?

Estimate a fixed-rate loan payment and see how extra monthly payments could shorten payoff time and reduce interest. The result is based only on the inputs and assumptions shown on the page.

How should I interpret the required monthly payment from the Loan Payment Calculator?

Use it as an estimate for the scenario entered, not as a guarantee or personal recommendation. Test changes to loan amount, annual interest rate (%), and loan term (years) to see which assumptions have the greatest effect.