This payment calculator works in two directions. Find the monthly payment for a loan amount, rate and term, or enter the payment you can afford and see how long it will take to pay the loan off.
Payment formula
Payment = P × r ÷ (1 − (1 + r)−n), where P is the loan amount, r is the monthly rate (yearly rate ÷ 12) and n is the number of payments.
To find the term, the calculator applies your payment month by month, adding interest to the balance each month until it reaches zero.
Worked example
A $25,000 loan at 7.5% over 5 years costs about $500.95 a month, with $5,057 of total interest. If you pay a flat $500 a month instead, it takes 61 months to clear.
Frequently asked questions
Why does a small payment take so long?
Each month, interest is charged first. If your payment barely covers it, very little goes toward the balance. If the payment is lower than the interest, the loan never ends, and the calculator will warn you.
Which calculator should I use for a mortgage?
Use the mortgage calculator to include property tax and insurance, or the amortization calculator for a full schedule.