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Payment Calculator

Solve for the monthly payment of a loan given amount, rate and term.

Result

Monthly Payment
$304.22
Total Paid
$10,951.90
Principal: $10KInterest: $952Total$11K
  • Principal - $10K
  • Interest - $952

About the Payment Calculator

Sometimes you just need the core number - what's the monthly payment for a given loan amount, rate, and term? Our Payment Calculator solves exactly that, without any of the extras like taxes or insurance that more specialized calculators include.

How It Works

The calculator applies the standard amortizing loan payment formula directly to your loan amount, interest rate, and term in months, solving for the fixed monthly payment that fully pays off the loan (principal and interest) by the end of the term.

M = P × [r(1+r)^n] / [(1+r)^n − 1] where P = loan amount, r = monthly interest rate, n = number of payments

Formula & Methodology

This is the pure present-value-of-an-annuity formula underlying every fixed-rate loan payment calculation on this site, stripped down to just its three core inputs - no taxes, insurance, or fees layered on top. It answers a single question precisely: what fixed monthly payment, applied for n months at rate r, exactly retires a loan of amount P by the final payment.

Step-by-Step: Calculating It By Hand

  1. 1Divide the annual interest rate by 12 to find the monthly rate, r.
  2. 2Multiply the loan term in years by 12 to find the total number of payments, n.
  3. 3Compute (1+r)^n.
  4. 4Plug the loan amount, r, and (1+r)^n into the formula to solve for the monthly payment.

Examples

Short-term loan

$10,000 at 6% over 36 months comes to a monthly payment around $304, totaling roughly $10,955 over the full term.

Longer term

The same $10,000 stretched to 60 months lowers the monthly payment but increases total interest paid over the life of the loan.

Advantages

  • Fast, no-frills answer to a simple but common question
  • Works for any type of fixed-rate installment loan
  • Instantly shows total paid alongside the monthly figure
  • No unnecessary fields to fill out when you just need the core number

Common Mistakes

  • Using an annual rate where a monthly rate is expected, or vice versa
  • Forgetting fees or points that might be rolled into the loan amount
  • Not comparing the total paid figure, focusing only on the monthly payment
  • Assuming this general payment matches a mortgage payment, which typically includes taxes and insurance too

Edge Cases to Watch For

  • A 0% interest rate makes the formula divide by zero - payment simplifies to loan amount divided by number of payments.
  • This calculates principal and interest only; a mortgage payment specifically also typically includes taxes and insurance, which this general-purpose calculator doesn't add.
  • Fees or points rolled into the loan amount increase P and therefore the payment, even though they aren't part of the 'purchase price' the loan is nominally for.
  • Switching between an annual rate and a rate already expressed monthly is a common input error that significantly changes the result.

Common Use Cases

  • Quickly checking a loan payment for any purpose
  • Comparing payments across different rates or terms
  • Verifying a lender's quoted payment is calculated correctly
  • Getting a fast answer without navigating a more specialized calculator
Written & fact-checked by the Calculateus TeamLast updated August 5, 2026How we verify our formulas

Frequently asked questions

How is this different from the Loan Calculator?

It's functionally the same calculation with term in months rather than years - useful for shorter-term loans like personal loans or equipment financing that are often quoted in months.

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Conclusion

For a mortgage specifically, our dedicated Mortgage Calculator adds taxes, insurance, and PMI for the full real-world picture - use this one when you just need the core loan math, fast.

References