Smart Calculators

Loan Calculator – Monthly Loan Payment and Interest

A loan calculator finds your monthly payment for any fixed-rate loan—personal, auto, or other. Enter the amount you're borrowing, the annual interest rate, and the term in years. This article explains the formula and links to our loan and auto loan calculators.

Quick Answer

LabelValue
Principal$20,000
Annual rate5%
Term5 years
Monthly payment$377.42

How It Works

Monthly payment uses the same amortization formula as a mortgage: M = P × [r(1+r)^n] / [(1+r)^n − 1]. The rate is converted to monthly (annual ÷ 12) and the term to months (years × 12). Use our Loan Calculator or Auto Loan Calculator for your numbers.

Additional Notes

For auto loans, enter the amount you're financing (after down payment). Our Auto Loan Calculator is set up for car loans.

Use Our Calculator

Try our Loan Calculator for your own numbers: /calculators/loan-calculator

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Frequently asked questions
  • Standard amortization: payment = P × [r(1+r)^n] / [(1+r)^n − 1], with monthly rate and term in months.

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