Loan Payment Calculator
Every loan quote hides the same three numbers inside one monthly figure: a $25,000 car loan at 7.5% for five years is about $501 a month — which quietly becomes $30,056 of payments and roughly $5,000 of pure interest over the term. Enter amount, annual rate and term; the calculator returns the payment, the total interest, and the share of every payment that never touches your balance.
That interest share is the number to shop with: a shorter term or a single-point rate cut moves it more than most people expect. The note line keeps the payoff logic visible — extra principal each month skips every future month's interest on that money — and your numbers stay on this device, so comparing dealer quotes takes seconds. It pairs with the compound interest calculator for the other side of the ledger: what that same money earns when you invest it instead.
How to use
- Enter the loan amount, annual interest rate and term in years.
- Read the monthly payment, total interest and interest share of all payments.
- Share the payment with one tap, or bookmark it — your quote numbers are remembered.
Frequently asked questions
What is the loan payment formula?
For an amortized loan with monthly compounding: payment = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the principal, r the monthly rate (annual ÷ 12) and n the number of payments. At 0% interest it collapses to the simple split: principal ÷ months.
How much does a shorter term save?
A lot, because interest has fewer months to accumulate. The same $25,000 at 7.5% costs about $5,056 over 60 months but roughly $3,268 over 48 — the payment rises about $100 while the interest drops nearly a fifth. The calculator makes that trade explicit in the interest-share stat.
Does paying extra principal change the payment?
No — extra principal shortens the term instead. Your required monthly payment stays fixed; each extra dollar reduces the balance, so subsequent months accrue less interest and the loan ends sooner. Lenders apply extra to principal only if you say so; otherwise some treat it as an early next payment.
What's missing from this calculator?
Fees, taxes, insurance and balloon structures. APR wraps some fees into the rate, so comparing APRs — not headline rates — is the honest basis. For a lease or balloon note the amortization differs; treat this tool as the standard fixed-payment case.