Overview
Use this calculator to estimate what a loan will cost each month based on the principal, annual interest rate, and repayment term. It helps you compare borrowing options, test different terms, and see how small changes in rate or length affect the payment. The result is an estimate, not a lender quote. It does not include optional fees, insurance, early repayment charges, or taxes unless those are part of the inputs you provide. If your loan uses a different payment schedule, such as weekly or biweekly installments, the monthly result should be treated as a reference point rather than the final contract amount.
Use cases
- Compare two car finance offersCheck whether a lower rate or a longer term gives the better monthly payment for the same vehicle price.
- Plan a personal loan budgetSee whether the monthly installment fits your income before applying for an unsecured loan.
- Check refinance optionsTest your current balance against a new term to understand how refinancing could change the monthly cost.
How it works
- 1
Enter the loan amount, annual interest rate, and repayment term.
- 2
The calculator applies the standard amortized loan payment formula.
- 3
Review the estimated monthly payment and adjust the inputs to compare scenarios.
Examples
Standard amortized loan
Input: Loan amount: 25000 | Rate: 6% | Term: 60 months
Output: Estimated monthly payment: 483.32
Shows a typical five-year loan with a fixed annual interest rate.
Shorter term, higher monthly cost
Input: Loan amount: 18000 | Rate: 4.9% | Term: 36 months
Output: Estimated monthly payment: 537.62
Useful for seeing how a shorter term raises the installment while reducing the repayment period.
Longer term, lower monthly cost
Input: Loan amount: 42000 | Rate: 7.25% | Term: 84 months
Output: Estimated monthly payment: 633.37
Helps compare a longer repayment horizon against the total monthly burden.
FAQ
Does the calculator include fees and insurance?
No. The estimate is based on the loan amount, rate, and term you enter. Add fees or insurance separately if you want a fuller monthly picture.
Why does my lender quote a different amount?
Lenders may use rounded rates, add origination fees, or calculate payments on a different schedule. A quoted offer can also include bundled products that change the total.
What term should I enter if the loan is in years?
Convert the term to months before entering it. For example, 5 years equals 60 months.
What happens if I enter 0% interest?
The calculator returns a simple principal-only payment split across the chosen term. That can be useful for comparing subsidized or promotional offers.
Can I use this for interest-only loans?
No. Interest-only loans follow a different payment structure, so the result here will not match those agreements.