Calculator guide
Estimate a regular loan payment from principal, interest rate, and repayment term.
Formula or method
M = P × r(1+r)^n / ((1+r)^n − 1), where P is principal, r monthly interest, and n number of payments.
How to use this calculator
- Enter the amount borrowed.
- Enter the annual rate and term.
- Read the estimated payment and total interest, then test another term.
Worked example
A $10,000 loan at 8% for 3 years uses r=.08/12 and n=36, giving about $313.36 per month.
Understanding the result
The payment is a mathematical estimate for a fixed-rate amortizing loan; actual disclosures can include fees and different timing.
Limitations and assumptions
- Assumes fixed interest, regular payments, and no additional fees or skipped payments.
- Does not assess affordability, credit eligibility, or lender terms.
Frequently asked questions
Does paying extra reduce interest?
Usually yes for an amortizing loan, but check whether the contract applies extra payments to principal.
What does APR include?
APR can include certain fees and is not always identical to the stated interest rate.
Can this calculate interest-only loans?
No; interest-only and irregular-payment loans need another method.
Sources
Educational estimate only; not financial advice or a loan offer.