How loan payments work
For a fixed-rate amortizing loan, the monthly payment depends on principal, annual interest rate and repayment term. The calculator assumes equal monthly installments and monthly interest.
Worked example
Example: a $15,000 loan at 6.5% for five years produces a monthly payment of about $293.49. Your lender may add fees or use different conventions.
Assumptions and limitations
This estimate excludes origination fees, insurance, penalties and changes in interest rates.
How to use this calculator
Enter the requested values, check the units, and press Calculate now. Adjust one input at a time to compare scenarios. The result updates only when you press the button again.
For educational purposes only. Verify important financial or health decisions with a qualified professional.
Further reading: How loan payments work
Further reading: How to build a monthly budget
Monthly payment formula
For a fixed-rate loan, payment = P × r ÷ [1 − (1 + r)^(−n)], where P is the loan amount, r is the monthly interest rate (entered annual interest rate divided by 1,200), and n is the number of monthly payments. At 0% interest, payment = P ÷ n.
Frequently asked questions
Does this include lender fees?
No. Origination charges, late fees, insurance and other costs are excluded. Compare the lender’s APR and full repayment schedule.
Can I use this calculator for free?
Yes. CalcTrustHub calculators are free to use and do not require an account. Results are estimates based on your inputs.
Compare the full borrowing cost
Two loans with the same monthly payment can have different total costs if their terms or fees differ. A longer term usually lowers each payment but increases the amount of interest paid. Run the same principal and rate with a shorter term to see the trade-off.
What happens if the interest rate is zero?
The calculator divides the principal by the number of monthly payments. It does not add interest when the entered rate is 0%.