Payment Calculator
Calculate monthly loan payments using standard amortization formula.
How Payment Calculator Works
The payment calculator uses the standard amortization formula to determine your monthly payment. Given a loan amount, interest rate, and term, it computes the fixed monthly payment that will fully repay the loan. For a deeper breakdown of how each payment splits between principal and interest over time, see our Amortization Calculator.
The formula used is M = P[r(1+r)^n] / [(1+r)^n-1], where P is principal, r is the monthly interest rate (annual rate / 12), and n is the number of months. This formula ensures each payment covers interest first, then reduces the principal balance.
To estimate how much home you can afford given a target payment, use our Mortgage Calculator for a complete picture including taxes and insurance.
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For a related calculation, use Amortization Calculator to view the full month-by-month amortization schedule showing principal, interest, and balance. Alternatively, use Loan Calculator to determine monthly payments and total interest for personal loans, student loans, and more.
For the underlying method, read How to Read an Amortization Schedule and Save Interest with Extra Principal or Refinancing Your Mortgage: When It Makes Sense.