SolvrTools

Loan Payment Calculator

Estimate monthly payment, total payment, and total interest for a fixed-rate loan.

Before you calculate

Quick context to help you use this tool with confidence.

Use this loan payment calculator to estimate your monthly payment, total repayment amount, and total interest for a fixed-rate loan. Whether you're planning a car loan, personal loan, or small financing decision, this tool helps you understand the true cost of borrowing before you commit.

By adjusting the loan amount, interest rate, and term, you can quickly see how different factors impact your monthly payment and the total interest paid over time.

Inputs

Fields marked with * are required.

Results

Your result updates after a successful calculation.

Monthly payment

$489.15

Estimated fixed payment due each month.

Total paid over the loan

$29,349.22

Combined total of all payments across the full term.

Total interest paid

$4,349.22

How much of the total cost goes to interest rather than principal.

How it works

Short formula and logic summary for this tool.

Monthly loan payments are calculated using a standard amortization formula. This formula ensures that each payment covers both interest and a portion of the principal over the life of the loan.

The calculation takes into account:

  • Loan amount (principal): the total amount borrowed
  • Interest rate: the annual rate, converted into a monthly rate
  • Loan term: the total number of months over which the loan is repaid

Each monthly payment includes:

  • Interest: the cost of borrowing the remaining balance
  • Principal: the portion that reduces your loan balance

Early in the loan, a larger portion of your payment goes toward interest. Over time, more of each payment is applied to the principal. This is why longer loan terms result in significantly more total interest paid.

Worked example

For a $25,000 loan at 6.5% interest over 5 years: - Loan amount: $25,000 - Interest rate: 6.5% - Loan term: 5 years (60 months) Results: - Monthly payment: $489.15 - Total paid: $29,349.22 - Total interest: $4,349.22 This example shows how interest increases the total cost of a loan. Even with a moderate interest rate, you end up paying several thousand dollars more than the original loan amount over time.

  • principal: 25000
  • annualRate: 6.5
  • years: 5

Example results

  • Monthly payment: $489.15
  • Total paid: $29,349.22
  • Total interest: $4,349.22

FAQ

Common questions about this tool.

Does this calculator assume a fixed rate?

Yes. This version assumes the interest rate remains constant over the full term.

Can I use this for auto or personal loans?

Yes. It works for any fixed-rate installment loan with regular monthly payments.

What affects my monthly loan payment the most?

Your monthly payment is primarily affected by three factors: the loan amount, the interest rate, and the loan term. Higher loan amounts and interest rates increase your payment, while longer loan terms reduce the monthly payment but increase the total interest paid.

Does a longer loan term save money?

A longer loan term lowers your monthly payment, but it usually increases the total amount of interest you pay over time. Shorter loan terms typically save money overall but require higher monthly payments.

Can I use this calculator for mortgages?

Yes, this calculator can be used for basic mortgage estimates. However, mortgages may include additional costs such as property taxes, insurance, and fees that are not included in this calculation.

What happens if I pay off my loan early?

Paying off your loan early can reduce the total interest you pay. Since interest is calculated based on the remaining balance, reducing the balance faster lowers the overall cost of borrowing.