Loan Payment Calculator — See Your Monthly Payment Instantly

Select "Calculate Loan Amount," enter $500 as your monthly payment, your expected APRThe total yearly cost of borrowing, including interest and fees, expressed as a percentage of the loan amount., and desired term. For example, at 7% APRThe total yearly cost of borrowing, including interest and fees, expressed as a percentage of the loan amount. over 5 years: $500/month = ~$25,200 loan. Over 3 years: ~$16,300. Over 7 years: ~$32,700. A longer term increases borrowing power but costs more in total interest.

If your monthly payment equals the monthly interest charge, no principal is ever paid down and the loan never ends. This is sometimes called an "interest-only" payment. The calculator shows your minimum interest-covering payment so you know the floor beneath which you would never make progress. Credit card minimum payments are often dangerously close to this threshold.

Select "Calculate Loan Term," enter your loan amount and monthly payment. The formula n = −ln(1 − rP/M) / ln(1+r) solves for the exact number of payments using natural logarithms. This is mathematically precise and accounts for the declining balance effect where each successive payment has a larger principal portion and smaller interest portion.

Extra payments reduce principal faster, which reduces future interest charges, creating a virtuous cycle that shortens the loan significantly. Even small increases have an outsized effect — adding $25/month to a $500 payment on a 5-year loan can save months of payments and hundreds in interest. The earlier in the loan term you make extra payments, the greater the impact because the principal is highest at the beginning.

Shorter terms have higher monthly payments but much less total interest. Longer terms have lower payments but cost significantly more over time. For a $25,000 loan at 7%: a 3-year term costs $772/month with $2,781 total interest; a 5-year term costs $495/month with $4,700 total interest. Choose the shortest term you can comfortably afford.

For car loans (typically $20K-$50K over 3-7 years at 5-9% APRThe total yearly cost of borrowing, including interest and fees, expressed as a percentage of the loan amount.): a shorter term is almost always better because cars depreciate rapidly. A $35,000 car loan at 7% over 48 months costs $838/month with $5,224 total interest vs 72 months at $596/month with $7,911 total interest — the extra 2 years costs $2,687 more in interest. For mortgages ($150K-$500K+ over 15-30 years at 6-7% APRThe total yearly cost of borrowing, including interest and fees, expressed as a percentage of the loan amount.): a 15-year term saves dramatically on interest but requires a much higher payment. A $250,000 mortgage at 6.5% costs $1,896/month for 15 years ($91,280 total interest) vs $1,580/month for 30 years ($318,800 total interest). The 30-year term costs $227,520 more in interest. However, the 15-year payment is $316/month higher, so choose based on whether the cash flow or long-term savings matters more to you.

Adding $50/month increases your borrowing power significantly more than $50 times the loan term because the extra payment reduces the interest burden. For example, at 7% APRThe total yearly cost of borrowing, including interest and fees, expressed as a percentage of the loan amount. over 60 months: $500/month gets you ~$25,200 while $550/month gets you ~$27,700 — that is $2,500 more borrowing power from just $50 extra per month. Over 72 months at the same rate: $500/month → ~$29,200, $550/month → ~$32,100. The calculator shows this as the "+$50/month" line in Loan Amount mode.