Payment Calculator - Free Monthly Payment Calculator for Any Loan | Calculate Car Loan, Personal Loan & Credit Card Payments
Understanding Loan Payments
What is a Payment Calculator?
A payment calculator helps you determine how much you'll pay each month (or week/bi-week) on an installment loan. It considers three key factors:
- Loan Amount: The total you're borrowing
- Interest Rate: The cost of borrowing (APR)
- Loan Term: How long you have to repay
Understanding your payment amount before borrowing helps you budget properly and avoid financial stress.
Three Payment Structures
Standard Amortized
Equal payments each period. Part goes to principal, part to interest. Loan fully paid at term end. Best for most borrowers.
Interest-Only
Lower monthly payments (interest only), but full principal due at end. Risky—requires refinancing or large lump sum.
Balloon Payment
Lowest monthly payments but huge final payment. Common in business loans. Plan carefully!
Power of Extra Payments
Making extra payments is one of the smartest financial moves:
Example: $25,000 Auto Loan
Rate: 6.5% | Term: 5 years
With $100 Extra/Month
Payment Frequency Comparison
| Frequency | Payments/Year | Benefit |
|---|---|---|
| Monthly | 12 | Standard |
| Bi-Weekly | 26 | = 13 months |
| Weekly | 52 | Even faster |
Pro tip: Bi-weekly payments create an extra month of payment each year without feeling the strain, helping you pay off loans faster.
Frequently Asked Questions
How do I calculate my monthly payment on a loan?
To calculate your monthly payment, you need: loan amount, annual interest rate, and loan term. The formula is: M = P * [r(1+r)^n] / [(1+r)^n-1], where M=monthly payment, P=principal, r=monthly interest rate (annual rate/12), n=total payments. Our calculator does this instantly—just enter your loan details and click Calculate. For a $25,000 loan at 6.5% over 5 years, the monthly payment is $489.10.
What's the difference between standard, interest-only, and balloon payments?
Standard amortized: Each payment includes principal and interest, fully paying off the loan by the end. This is the safest and most common structure. Interest-only: You only pay interest each month; the full principal is due at term end—risky as you're not building equity. Balloon payment: Lower monthly payments but a large lump sum (balloon) due at the end—requires careful planning and often refinancing. Standard is best for most borrowers, while the others require planning for large future payments.
How much can I save by making extra payments?
Extra payments can save thousands! Even an extra $100/month on a $25,000 loan at 6.5% over 5 years saves approximately $812 in interest and pays off the loan 8 months early. The savings increase with larger loan amounts, higher interest rates, and longer terms. A $50,000 loan with $200 extra monthly could save $3,000-5,000 over the life of the loan. Use our calculator's 'Extra Payment' feature to see your specific savings.
Should I choose monthly, bi-weekly, or weekly payments?
Bi-weekly payments (26 per year) result in 13 monthly equivalents instead of 12, automatically creating an extra payment annually. This pays off loans faster without feeling the strain—great if you're paid bi-weekly. Weekly payments (52 per year) offer even more frequent reduction of principal, saving additional interest. Choose based on your pay schedule and cash flow. Consistency matters more than frequency. If you're paid monthly, stick with monthly payments to avoid budgeting complications.
What types of loans can I calculate with this tool?
This calculator works for any fixed-rate installment loan: auto loans (new/used cars), personal loans, home equity loans, student loans (private), RV/boat loans, furniture/appliance financing, debt consolidation loans, and business equipment loans. It doesn't work for revolving credit (credit cards with variable payments), adjustable-rate loans, or mortgages with PMI/taxes (use our Mortgage Calculator for those). Perfect for comparing offers from different lenders.
How accurate is this payment calculator?
Our calculator uses standard financial formulas and is highly accurate (99.9%+) for fixed-rate loans. However, actual payments may vary slightly due to: origination fees, insurance costs, payment due date timing, prepayment penalties, or promotional rates. Always verify the final payment amount with your lender before signing any loan agreement. Use this calculator for planning, comparison shopping, and understanding how loans work—it's a powerful tool for informed borrowing decisions.