This loan payment calculator will enable you to determine the monthly payments on an installment loan. Enter the amount of the loan, the interest rate, and the length of the loan in months. This calculator can be used for car, home, or other types of fixed loans.
This simple loan calculator will help you understand the monthly payment on a fixed rate installment loan.
How the Loan Payment Calculator Works
The loan calculator takes just three pieces of information: Loan amount, interest rate, and loan term.
The loan amount is how much you plan to borrow. The loan amount is the total amount borrowed. For example, if you plan to buy a car for $15,000 and make a $2,000 down payment, the loan amount would be the difference, or $13,000.
The interest rate is the amount of money lenders charge borrowers on a loan, expressed as a percentage. Also known as the Annual Percentage Rate (APR), the interest rate per period (typically monthly) is multiplied by the outstanding balance of the loan to calculate interest charges.
For example, a 6% annual APR would translate into a 0.50% monthly interest rate (6% / 12). On a loan with an outstanding balance of $10,000, the monthly interest would be $50 ($10,000 x 0.50%).
For the debt calculator above, enter the annual APR that applies to your loan.
The loan term is the length of the loan. For example, car loan terms typically range from three to seven years. A home loan term is commonly 15 or 30 years. For the loan calculator above, enter your loan terms in months. For example, for a five-year loan, enter 60 months (5 x 12).