The Payment Calculator can determine the monthly payment amount or loan term for a fixed interest loan. Use the “Fixed Term” tab to calculate the monthly payment of a fixed-term loan. Use the “Fixed Payments” tab to calculate the time to pay off a loan with a fixed monthly payment. For more information about or to do calculations specifically for car payments, please use the Auto Loan Calculator. To find net payment of salary after taxes and deductions, use the Take-Home-Pay Calculator.
Payment Calculator
Monthly Payment: —
Total of Payments: —
Total Interest: —
Amortization Schedule
| Year | Interest | Principal | Ending Balance |
|---|---|---|---|
| 1 | $11,769.23 | $8,483.33 | $191,516.67 |
| 2 | $11,246.00 | $9,006.57 | $182,510.10 |
| 3 | $10,690.49 | $9,562.07 | $172,948.02 |
| 4 | $10,100.72 | $10,151.84 | $162,796.18 |
| 5 | $9,474.58 | $10,777.98 | $152,018.20 |
| 6 | $8,809.82 | $11,442.75 | $140,575.45 |
| 7 | $8,104.05 | $12,148.51 | $128,426.94 |
| 8 | $7,354.76 | $12,897.80 | $115,529.13 |
| 9 | $6,559.25 | $13,693.31 | $101,835.82 |
| 10 | $5,714.68 | $14,537.89 | $87,297.94 |
| 11 | $4,818.01 | $15,434.55 | $71,863.38 |
| 12 | $3,866.04 | $16,386.52 | $55,476.86 |
| 13 | $2,855.36 | $17,397.21 | $38,079.66 |
| 14 | $1,782.34 | $18,470.23 | $19,609.43 |
| 15 | $643.13 | $19,609.43 | $0.00 |
Understanding Loans
A loan is a contract between a borrower and a lender in which the borrower receives an amount of money (principal) that they are obligated to pay back in the future. Loans can be customized based on various factors. Two of the most common deciding factors are the term and monthly payment amount, which are separated by tabs in the calculator above.
📘 Fixed Term
Mortgages, auto, and many other loans tend to use the time limit approach for repayment. For mortgages, choosing between 30 years or 15 years can greatly affect long-term financial goals.
- Shorter terms offer lower interest rates and quicker debt payoff.
- Longer terms may align better with retirement benefits or lower monthly payments.
The Payment Calculator can help compare financing options for cars, which may range from 12 to 96 months. Although longer loans lower monthly payments, shorter ones reduce total cost.
💰 Fixed Monthly Payment Amount
This approach determines how long it takes to pay off a loan — ideal for understanding credit card repayments or seeing how extra monthly contributions affect payoff time.
If the calculated payment isn’t enough to cover both interest and principal, adjust the loan amount, monthly pay, or interest rate.
📈 Interest Rate (APR)
The difference between interest rate and APR can mean thousands of dollars in large loans. APR includes fees such as broker, closing, and admin costs, making it a more accurate reflection of total cost.
Borrowers can enter both values to compare. Use interest rate for basic cost, and APR for total cost. Visit the APR Calculator or Interest Rate Calculator for more insights.
🔁 Variable vs. Fixed
Loans can have either fixed or variable rates. Fixed rates remain the same, while variable rates fluctuate with economic indices like inflation or the central bank rate.
Common variable-rate loans include HELOCs, student loans, and adjustable-rate mortgages. Learn more with our Mortgage Calculator, Auto Loan Calculator, or Student Loan Calculator.
📊 Variable Rate Information
Variable rates can change over time, affecting monthly payments and total interest. Many lenders place caps to limit maximum rates even if market rates rise.
Rate updates occur periodically, not instantly after economic shifts. Variable rates are usually favorable when indexed rates are declining.
Credit card interest may also be fixed or variable. Borrowers with excellent credit may request better rates. Use the Credit Card Calculator or Payoff Calculator for multi-card repayment planning.