Payment Calculator
The Payment Calculator can determine the monthly payment amount or loan term for a fixed interest loan. Use the “Fixed Term” tab to calculate the monthly payment of a fixed-term loan. Use the “Fixed Payments” tab to calculate the time to pay off a loan with a fixed monthly payment.
Monthly Payment:
Amortization Schedule
| Year | Interest | Principal | Ending Balance |
|---|
| Month | Payment | Interest | Principal | Balance |
|---|
Loan Term:
About Loans
A loan is a contract between a borrower and a lender in which the borrower receives an amount of money (principal) that they are obligated to pay back in the future. Loans can be customized based on various factors. The number of available options can be overwhelming. Two of the most common deciding factors are the term and monthly payment amount, which are separated by tabs in the calculator above.
Fixed Term
Mortgages, auto, and many other loans tend to use the time limit approach to the repayment of loans. For mortgages, in particular, choosing to have routine monthly payments between 30 years or 15 years or other terms can be a very important decision because how long a debt obligation lasts can affect a person’s long-term financial goals.
Fixed Monthly Payment Amount
This method helps determine the time required to pay off a loan and is often used to find how fast the debt on a credit card can be repaid. This calculator can also estimate how early a person who has some extra money at the end of each month can pay off their loan.
Interest Rate (APR)
When using a figure for this input, it is important to make the distinction between interest rate and annual percentage rate (APR). Especially when very large loans are involved, such as mortgages, the difference can be up to thousands of dollars.
Variable vs. Fixed
When it comes to loans, there are generally two available interest options to choose from: variable (sometimes called adjustable or floating) or fixed. The majority of loans have fixed interest rates, such as conventionally amortized loans like mortgages, auto loans, or student loans.
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How to Use Loan Payment Calculator: Estimate Monthly Payments & Terms
- Select Calculation Type – Choose between “Fixed Term” or “Fixed Payment.”
- Enter Loan Details – Input loan amount, interest rate, and term/payment.
- Get Instant Results – View monthly payments, total interest, and amortization.
- Explore Charts & Schedules – See payment breakdowns in graphs and tables.
- Save & Compare – Adjust inputs to find the best loan option for your budget.
FAQs
1. How does the loan payment calculator work?
The tool calculates monthly payments or loan terms based on loan amount, interest rate, and repayment period.
2. Can I use this for mortgages and auto loans?
Yes! It works for any fixed-rate loan, including mortgages, auto loans, and personal loans.
3. What’s the difference between APR and interest rate?
APR includes fees, while the interest rate is just the borrowing cost. Always check both when comparing loans.
4. How do I pay off my loan faster?
Increase monthly payments or choose a shorter term to reduce interest costs.
5. Is this calculator free to use?
Absolutely! No sign-up required, just enter your loan details and get results instantly.