Payment Calculator
Calculate your loan payments, interest costs, and amortization schedule for fixed term or fixed payment loans.
Payment Results: $0.00
| Loan Amount | $0.00 |
|---|---|
| Total Interest | $0.00 |
| Total Cost | $0.00 |
| Loan Term | 0 years |
| Monthly Payment | $0.00 |
About Payment Calculator
This payment calculator helps you determine your monthly loan payments, total interest costs, and provides a detailed amortization schedule for both fixed term and fixed payment loans.
How Loan Payments Are Calculated
The monthly payment for a fixed term loan is calculated using the following formula:
M = P × (r × (1 + r)n) / ((1 + r)n - 1)
Where:
- M = Monthly payment
- P = Principal loan amount
- r = Monthly interest rate (annual rate divided by 12)
- n = Number of payments (loan term in months)
Fixed Term vs. Fixed Payment
Fixed Term Loans: You specify the loan amount, term (duration), and interest rate. The calculator determines your fixed monthly payment.
Fixed Payment Loans: You specify the loan amount, desired monthly payment, and interest rate. The calculator determines how long it will take to pay off the loan.
Understanding Amortization
Amortization is the process of paying off a loan over time through regular payments. Each payment consists of both principal and interest:
- Early in the loan, most of your payment goes toward interest
- As you pay down the principal, more of each payment goes toward reducing the principal
- The amortization schedule shows this breakdown for each payment
Factors Affecting Loan Payments
Loan Amount: Higher principal amounts result in higher monthly payments.
Interest Rate: Higher rates increase both your monthly payment and total interest paid.
Loan Term: Longer terms reduce monthly payments but increase total interest paid.