Loan Payment Calculator
A personal loan turns a lump sum into a fixed monthly payment, and that payment is what tells you whether the loan fits your budget. This loan payment calculator estimates the monthly payment on a personal or installment loan from the amount you borrow, the annual interest rate, and the term. It uses the standard amortizing-loan formula, so the figure matches a typical fixed-rate quote. Personal loans usually run from one to seven years at higher rates than a mortgage, so the total interest can add up quickly even on a modest balance.
Calculate
Default result: $415.17
Loan Payment Calculator · Materials
calculators.dev
Monthly payment
20000 × 9 × 5
Shopping list
- Total interest paid
- $4,910.03
- Total paid over the loan
- $24,910.03
Est. total
$415.17
Estimate — confirm w/ supplier · calculators.dev
This calculator provides estimates for general informational purposes only and is not financial, investment, tax, or legal advice. Results are projections based on the figures you enter and the stated assumptions, and actual outcomes will differ. Consult a qualified financial professional before making borrowing, saving, or investment decisions.
Reviewed by the calculators.dev team · Last updated 2026-06-24
Formula reviewed against Bankrate Personal Loan Calculator — standard amortizing-loan payment reference
How to calculate
Enter the loan amount, the annual interest rate, and the term in years. The calculator converts the rate to a monthly figure and the term to a number of monthly payments, then applies the amortizing-payment formula. For $20,000 at 9% over 5 years that is about $415.17 a month. The total interest line shows the cost of borrowing on top of the amount itself — here, roughly $4,910 over the five years.
M = P · i(1 + i)^n / ((1 + i)^n − 1), where M is the monthly payment, P is the loan amount, i is the monthly rate (annual rate ÷ 12), and n is the number of payments (years × 12). A 0% promotional loan degenerates to M = P ÷ n. Total interest is M × n − P. The rate here is interest only; origination fees, which lenders fold into the APR, are not modelled.
Example calculation
A $20,000 personal loan at a 9% annual rate over 5 years has a monthly rate of 0.0075 and 60 payments. The monthly payment is about $415.17. Over the five years you repay roughly $24,910, of which about $4,910 is interest.
- monthly
- $415.17
- totalInterest
- $4,910.03
- totalPaid
- $24,910.03
Assumptions
- The interest rate is fixed for the whole term and the loan fully amortizes to a zero balance.
- Origination or processing fees are not included — a lender's quoted APR may be higher than the interest rate entered here.
- Payments are monthly, on schedule, with no extra principal or skipped payments.
Common mistakes
- Comparing loans by monthly payment alone — a longer term lowers the payment but raises the total interest.
- Ignoring origination fees, which raise the true cost above the interest rate shown here.
- Entering the rate as a decimal (0.09) instead of a percentage (9), which understates the payment.
Frequently asked questions
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. APR adds in fees such as origination charges, so it is usually a little higher. Enter the interest rate here; compare lenders on APR.
Does a longer term make the loan cheaper?
It lowers the monthly payment but increases the total interest, because you owe the balance for longer. A shorter term costs more per month but less overall.
Can I pay a personal loan off early?
Usually yes, and it saves interest. Check for a prepayment penalty first. Extra principal payments shorten the term and reduce total interest.
Is this accurate for a car or student loan?
The math is the same for any fixed-rate amortizing loan. For a car loan with a trade-in or down payment, the auto loan calculator handles those adjustments directly.