Loan Payment Calculator

Free loan calculator. Enter loan amount, interest rate, and term to get your monthly payment, total interest, and total cost. Use our free calculator now.

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Monthly Payment hesaplanacak
Total Payment hesaplanacak
Total Interest hesaplanacak
Interest / Principal Ratio hesaplanacak

How Loan Payments Work

Most personal loans, car loans, and mortgages use an amortizing structure: you pay a fixed amount each month, and each payment covers both interest and a portion of the principal. Early payments are mostly interest; later payments are mostly principal.

Monthly Payment Formula (PMT)

PMT = P × [r(1+r)^n] ÷ [(1+r)^n − 1]

  • P = Loan principal
  • r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
  • n = Total number of monthly payments (years × 12)

How to Use This Calculator

  1. Enter the loan amount (principal).
  2. Enter the annual interest rate.
  3. Enter the loan term in years or months.
  4. The calculator shows your fixed monthly payment, total amount paid, and total interest charged.

Example Calculation

$20,000 loan at 6% annual rate for 4 years (48 months):

  • Monthly payment: $469.70
  • Total paid: $22,545.60
  • Total interest: $2,545.60

Tips to Reduce Loan Costs

  • Shorter term: Higher monthly payments but much less interest overall.
  • Larger down payment: Reduces the principal, reducing total interest.
  • Better credit score: Qualifies you for lower interest rates.
  • Extra payments: Even small additional payments significantly reduce total interest.

How to Use This Calculator

Using our calculator is simple: enter the required values into the input fields and click the calculate button. Results are displayed instantly on screen. You can adjust the values and recalculate to compare different scenarios and find the best option for your situation.

Frequently Asked Questions

QuestionAnswer
How accurate are the results?We use standard formulas and up-to-date 2025 rates. Individual circumstances may vary slightly.
Is this calculator free?Yes, completely free and no registration required.
What should I do for exact figures?For precise information, consult a relevant professional or official authority.
Does it work on mobile devices?Yes, it works seamlessly on all devices and screen sizes.

Important Notes

This calculator is provided for informational purposes only. For legal, financial, or medical decisions, always seek advice from qualified professionals. Calculation results do not constitute official documents. Legislative changes may affect results; please visit the relevant official website for the most up-to-date information. Our calculators are regularly updated to reflect current regulations and rates.

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Frequently Asked Questions

PMT = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the principal, r is the monthly interest rate, and n is the number of payments.
A longer term means lower monthly payments but more total interest paid. A 5-year loan at 7% costs significantly less interest than a 10-year loan for the same amount.
Choose shorter if you can afford higher monthly payments — you pay less interest overall. Choose longer if you need to keep monthly payments manageable.