Payment Calculator
Calculate monthly payments for loans and mortgages with detailed amortization breakdown.
Payment Results
Regular Payment:
Total Interest:
Total Amount Paid:
Payment Breakdown
About Our Payment Calculator
Our Payment Calculator is a comprehensive tool for calculating loan and mortgage payments, helping you plan your finances with confidence. Whether you're considering a home mortgage, auto loan, or personal loan, this calculator provides accurate payment estimates and detailed breakdowns.
How Payment Calculations Work
Loan payments are calculated using the standard amortization formula, which determines equal periodic payments that will fully pay off a loan with interest. The formula takes into account the loan amount, interest rate, and loan term.
The Payment Formula
The formula for calculating regular loan payments is:
Payment = P × [r(1+r)^n] / [(1+r)^n-1]
Where:
- P is the principal (loan amount)
- r is the periodic interest rate (annual rate divided by payment frequency)
- n is the total number of payments (term years × payment frequency)
Key Features:
- Calculate monthly, bi-weekly, or weekly payments
- See the total interest paid over the life of the loan
- Visualize how payments are distributed between principal and interest
- Plan your budget with accurate payment estimates
How to Use:
- Enter the loan amount
- Input the annual interest rate
- Specify the loan term in years
- Select your preferred payment frequency
- Click "Calculate Payment" to see the results
Types of Loans You Can Calculate:
Mortgage Loans: Calculate payments for home purchases with typical terms of 15-30 years.
Auto Loans: Determine monthly payments for vehicle financing, usually with terms of 3-7 years.
Personal Loans: Estimate payments for debt consolidation, home improvements, or other major expenses.
Student Loans: Plan repayment strategies for education financing.
Business Loans: Calculate commercial financing payments for equipment, expansion, or working capital.
Understanding Your Results
After calculating your payment, you'll see:
- Regular Payment: The amount you'll pay each period (monthly, bi-weekly, or weekly).
- Total Interest: The total interest paid over the life of the loan.
- Total Amount Paid: The combined total of principal and interest payments.
- Payment Breakdown: A visual representation of how payments are distributed between principal and interest.
Perfect for homebuyers, financial planners, real estate professionals, or anyone planning a major purchase. Start calculating your payments today!
Frequently Asked Questions
How does changing my payment frequency affect my loan?
Changing your payment frequency can significantly impact your loan. Making bi-weekly or weekly payments instead of monthly payments often results in paying off your loan faster and reducing the total interest paid. This happens because you make more payments per year (26 bi-weekly or 52 weekly payments compared to 12 monthly payments), which reduces the principal more quickly and therefore reduces the interest that accrues.
How much does my interest rate affect my payment?
Your interest rate has a substantial impact on your payment amount and the total cost of your loan. Even a small difference in interest rate can result in thousands of dollars of difference over the life of a long-term loan like a mortgage. For example, on a $300,000 30-year mortgage, the difference between a 4% and 5% interest rate could change your monthly payment by over $170 and result in more than $60,000 in additional interest over the loan term.
Should I choose a shorter loan term to save money?
A shorter loan term typically results in higher monthly payments but significantly less interest paid over the life of the loan. For instance, a 15-year mortgage instead of a 30-year mortgage often has monthly payments that are 20-40% higher, but you'll pay off the loan in half the time and potentially save 50% or more on total interest. Your decision should balance monthly affordability with long-term financial goals.