Loan Payment
Calculate the monthly payment and total interest on a loan.
About Loan Payment
A loan is repaid in equal monthly payments that cover both principal and interest. Total interest is whatever remains in all the payments after the principal is repaid. Knowing the full interest cost, not just the monthly payment, reveals the true price of borrowing.
Formula
Loan Payment
Payment = P x m x (1+m)^n / ((1+m)^n - 1)
- P
- loan amount
- m
- monthly rate
- n
- number of months
Worked example
With the default values below, Loan Payment returns Monthly Payment of $483.32. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Loan amount
- 25,000
- Annual rateaccepts 0–100 %
- 6 %
- Yearsminimum 1
- 5
Results
- Monthly Payment
- $483.32
- Total Paid
- $28,999.20
- Total Interest
- $3,999.20
Step by step
- 1Values used
- 2Loan Payment
- 3Monthly Payment= 483.32
- 4Total Paid= 28,999.20
- 5Total Interest= 3,999.20
Assumptions and limits
- The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or fees or charges into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Loan Payment calculated?
Payment = P x m x (1+m)^n / ((1+m)^n - 1) A loan is repaid in equal monthly payments that cover both principal and interest. Total interest is whatever remains in all the payments after the principal is repaid.
Why does Loan Payment matter?
Knowing the full interest cost, not just the monthly payment, reveals the true price of borrowing.
What values do I need to enter?
This calculator takes 3 inputs: Loan amount, Annual rate, Years. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.