Loan Payment Calculator
Calculate the monthly payment for a loan using our simple loan calculator by entering the principal, interest rate, and term below.
Monthly Payment:
Total Interest: | $869.85
|
Total Payments: | $5,869.85
|
Monthly Payment: | $97.83 |
---|---|
Total Interest: | $869.85
|
Total Payments: | $5,869.85
|
Payoff Date: | Apr 2028
(60 payments) |
Amortization Schedule:
Date | Payment | Principal | Interest | Remaining Balance |
---|---|---|---|---|
Apr 2023 | $97.83 | $70.75 | $27.08 | $4,929.25 |
May 2023 | $97.83 | $71.13 | $26.70 | $4,858.12 |
Jun 2023 | $97.83 | $71.52 | $26.31 | $4,786.60 |
Jul 2023 | $97.83 | $71.90 | $25.93 | $4,714.70 |
Aug 2023 | $97.83 | $72.29 | $25.54 | $4,642.41 |
Sep 2023 | $97.83 | $72.68 | $25.15 | $4,569.73 |
Oct 2023 | $97.83 | $73.08 | $24.75 | $4,496.65 |
Nov 2023 | $97.83 | $73.47 | $24.36 | $4,423.18 |
Dec 2023 | $97.83 | $73.87 | $23.96 | $4,349.31 |
Jan 2024 | $97.83 | $74.27 | $23.56 | $4,275.04 |
Feb 2024 | $97.83 | $74.67 | $23.16 | $4,200.37 |
Mar 2024 | $97.83 | $75.08 | $22.75 | $4,125.29 |
Apr 2024 | $97.83 | $75.48 | $22.35 | $4,049.81 |
May 2024 | $97.83 | $75.89 | $21.94 | $3,973.92 |
Jun 2024 | $97.83 | $76.30 | $21.53 | $3,897.62 |
Jul 2024 | $97.83 | $76.72 | $21.11 | $3,820.90 |
Aug 2024 | $97.83 | $77.13 | $20.70 | $3,743.77 |
Sep 2024 | $97.83 | $77.55 | $20.28 | $3,666.22 |
Oct 2024 | $97.83 | $77.97 | $19.86 | $3,588.25 |
Nov 2024 | $97.83 | $78.39 | $19.44 | $3,509.86 |
Dec 2024 | $97.83 | $78.82 | $19.01 | $3,431.04 |
Jan 2025 | $97.83 | $79.25 | $18.58 | $3,351.79 |
Feb 2025 | $97.83 | $79.67 | $18.16 | $3,272.12 |
Mar 2025 | $97.83 | $80.11 | $17.72 | $3,192.01 |
Apr 2025 | $97.83 | $80.54 | $17.29 | $3,111.47 |
May 2025 | $97.83 | $80.98 | $16.85 | $3,030.49 |
Jun 2025 | $97.83 | $81.41 | $16.42 | $2,949.08 |
Jul 2025 | $97.83 | $81.86 | $15.97 | $2,867.22 |
Aug 2025 | $97.83 | $82.30 | $15.53 | $2,784.92 |
Sep 2025 | $97.83 | $82.75 | $15.08 | $2,702.17 |
Oct 2025 | $97.83 | $83.19 | $14.64 | $2,618.98 |
Nov 2025 | $97.83 | $83.64 | $14.19 | $2,535.34 |
Dec 2025 | $97.83 | $84.10 | $13.73 | $2,451.24 |
Jan 2026 | $97.83 | $84.55 | $13.28 | $2,366.69 |
Feb 2026 | $97.83 | $85.01 | $12.82 | $2,281.68 |
Mar 2026 | $97.83 | $85.47 | $12.36 | $2,196.21 |
Apr 2026 | $97.83 | $85.93 | $11.90 | $2,110.28 |
May 2026 | $97.83 | $86.40 | $11.43 | $2,023.88 |
Jun 2026 | $97.83 | $86.87 | $10.96 | $1,937.01 |
Jul 2026 | $97.83 | $87.34 | $10.49 | $1,849.67 |
Aug 2026 | $97.83 | $87.81 | $10.02 | $1,761.86 |
Sep 2026 | $97.83 | $88.29 | $9.54 | $1,673.57 |
Oct 2026 | $97.83 | $88.76 | $9.07 | $1,584.81 |
Nov 2026 | $97.83 | $89.25 | $8.58 | $1,495.56 |
Dec 2026 | $97.83 | $89.73 | $8.10 | $1,405.83 |
Jan 2027 | $97.83 | $90.22 | $7.61 | $1,315.61 |
Feb 2027 | $97.83 | $90.70 | $7.13 | $1,224.91 |
Mar 2027 | $97.83 | $91.20 | $6.63 | $1,133.71 |
Apr 2027 | $97.83 | $91.69 | $6.14 | $1,042.02 |
May 2027 | $97.83 | $92.19 | $5.64 | $949.83 |
Jun 2027 | $97.83 | $92.69 | $5.14 | $857.14 |
Jul 2027 | $97.83 | $93.19 | $4.64 | $763.95 |
Aug 2027 | $97.83 | $93.69 | $4.14 | $670.26 |
Sep 2027 | $97.83 | $94.20 | $3.63 | $576.06 |
Oct 2027 | $97.83 | $94.71 | $3.12 | $481.35 |
Nov 2027 | $97.83 | $95.22 | $2.61 | $386.13 |
Dec 2027 | $97.83 | $95.74 | $2.09 | $290.39 |
Jan 2028 | $97.83 | $96.26 | $1.57 | $194.13 |
Feb 2028 | $97.83 | $96.78 | $1.05 | $97.35 |
Mar 2028 | $97.88 | $97.35 | $0.53 | $0.00 |
On this page:
How to Calculate a Loan Payment
Calculating the amount of the loan payment is an important first step for anyone considering taking out a loan.
You need to make sure that you will be able to pay back the loan. If the loan payments take up too much of an individual’s income, it could become a major burden.
Loan Payment Formula
The loan payment formula can be found below:
Where:
PMT = payment
PV = remaining principal
r = periodic interest rate
n = number of payments
For example, let’s say someone is considering getting an auto loan with the following terms: $25,000 loan at 4% interest for 5 years.
But we first need to adjust the numbers so they will work with the loan payment formula.
The formula requires a periodic (or monthly) interest rate so we need to divide the 4% interest rate by 12 months to arrive at a periodic interest rate of 0.3333%. Also, the number of payments is found by multiplying 5 years by 12 months = 60.
Let’s plug these numbers into the loan payment formula:
Under these circumstances, the monthly loan payment will be $460.41.
You can also use an amortization calculator to find the monthly payment and see how much of the monthly payment goes to principal and how much goes to interest.
What Factors Affect Loan Payments
The three factors that affect loan payments are the loan balance, interest rate, and term of the loan. Let’s look at each of these in more detail.
The remaining principal of a loan is also known as the loan balance. The higher the loan balance, the higher the monthly payment will be.
The reverse holds true for a lower principal. You should pay as large a down payment as you can on a loan to reduce the monthly payment.
The interest rate is another factor for the loan payment. Similar to the balance, the higher the interest rate, the higher the payment will be.
Factors that affect the interest rate are the borrower’s credit score, the income of the borrower, the term of the loan, and the interest rate environment.
The term, or number of payments of the loan, is the final factor for loan payments. In this case, the higher the term, the lower the payment. And the lower the term, the higher the payment will be.
With a lower term, more money will need to be paid each month to pay off the loan in a shorter amount of time. Total interest will also be lower, and the interest rate will usually be lower with a shorter term.
You can use our loan payoff calculator to see how long it would take to pay off a loan at different payment amounts.
Types of Loans
There are three main types of loans: real estate, consumer, and business.
Real estate loans consist of first mortgages and second mortgages. A first mortgage is when an individual initially gets a mortgage to buy a home. A second mortgage, or a home equity line of credit, is an additional loan on their house at a later point in time.
They could use this second mortgage by tapping into the equity of their home to make improvements on the house.
The second loan category is consumer loans. Consumer loans may consist of credit cards, auto loans, student loans, and personal loans.
The final type of loan is a business or commercial loan. These are loans that an individual uses to start or grow a business.