Monthly Loan Payment Calculator
A monthly loan payment calculator shows the payment for any loan amount, rate, and term — and, more usefully, how the payment changes when any one of them changes. The free loan payment calculator above gives the payment, the total interest, and the payoff date for any combination, and this page runs the comparisons: the same loan at different amounts, rates, and terms, side by side.
Three comparisons matter when you borrow. The first is amount: doubling the loan doubles the payment and the interest, so a $20,000 loan at 7.5% for 5 years costs $400.76 a month, exactly twice the $200.38 of a $10,000 loan. The second is rate: the same $25,000 over 5 years costs $471.78 a month at 5% and $556.11 a month at 12%. The third is term: the same $25,000 at 7.5% costs $777.66 a month over 3 years and $383.46 a month over 7 years — but the 7-year loan costs $7,210.38 of interest against $2,995.60 for the 3-year loan.
How the Monthly Payment Is Calculated
The monthly payment comes from the amortization formula: the loan amount times the monthly rate times (1 plus the monthly rate) to the power of the number of payments, divided by (1 plus the monthly rate) to the power of the number of payments minus 1. The monthly rate is the APR divided by 12, and the number of payments is the term in years times 12. Change any one of the three inputs and the payment changes — and the tables below show by how much.
The payment is fixed for the life of a fixed-rate loan, but its split is not. In month 1 on the default $25,000 loan at 7.5%, the $500.95 payment is $156.25 of interest and $344.70 of principal. By month 60 it is $3.11 of interest and $497.84 of principal. The payment stays the same; the interest falls and the principal rises as the balance falls.
Step 1 — Enter the loan amount
The principal you borrow, before interest. The tables below run $10,000, $20,000, $25,000 and $30,000 at the same rate and term, so the effect of amount alone is visible.
Step 2 — Enter the APR
Use the APR from the loan offer, because the APR includes fees. The rate table below runs 5%, 7.5%, 10% and 12% on the same $25,000 over 5 years.
Step 3 — Enter the term
The term in years, converted to months. The term table below runs 3, 5 and 7 years on the same $25,000 at 7.5%.
Monthly Payment by Loan Amount
The same rate and term — 7.5% APR over 60 months — at four loan amounts. The payment and the interest scale exactly with the amount, so doubling the loan doubles both.
| Loan amount | Monthly payment | Total paid | Total interest |
|---|---|---|---|
| $10,000 | $200.38 | $12,022.77 | $2,022.77 |
| $20,000 | $400.76 | $24,045.54 | $4,045.54 |
| $25,000 | $500.95 | $30,056.92 | $5,056.92 |
| $30,000 | $601.14 | $36,068.31 | $6,068.31 |
The scaling is exact because the formula is linear in the loan amount: $20,000 is twice $10,000, so its payment of $400.76 is twice $200.38 and its interest of $4,045.54 is twice $2,022.77. The same holds for $30,000, which is three times $10,000: $601.14 is three times $200.38 and $6,068.31 is three times $2,022.77. Borrow only what the purchase needs, because every extra dollar borrowed costs the same proportional interest.
Monthly Payment by Interest Rate
The same loan — $25,000 over 60 months — at four APRs. The rate is the most powerful lever on the payment after the amount itself.
| APR | Monthly payment | Total paid | Total interest |
|---|---|---|---|
| 5% | $471.78 | $28,306.85 | $3,306.85 |
| 7.5% | $500.95 | $30,056.92 | $5,056.92 |
| 10% | $531.18 | $31,870.57 | $6,870.57 |
| 12% | $556.11 | $33,366.67 | $8,366.67 |
Moving from 5% to 7.5% adds $29.17 a month and $1,750.07 of interest. Moving from 7.5% to 10% adds $30.23 a month and $1,813.65 of interest. Moving from 10% to 12% adds $24.93 a month and $1,496.10 of interest. The total spread from 5% to 12% is $84.33 a month and $5,059.82 of interest — more than the interest on the 7.5% loan itself. That is why improving your credit score before borrowing can save thousands, and why the APR, not the payment, is the number to compare between offers.
Monthly Payment by Loan Term
The same loan — $25,000 at 7.5% — over three terms. A longer term lowers the payment and raises the total interest, every time.
| Term | Monthly payment | Total paid | Total interest | Payoff |
|---|---|---|---|---|
| 3 years (36 months) | $777.66 | $27,995.60 | $2,995.60 | Nov 2029 |
| 5 years (60 months) | $500.95 | $30,056.92 | $5,056.92 | Nov 2031 |
| 7 years (84 months) | $383.46 | $32,210.38 | $7,210.38 | Nov 2033 |
The 3-year loan costs $276.71 a month more than the 5-year loan, but it saves $2,061.32 of interest and ends two years sooner. The 7-year loan costs $117.49 a month less than the 5-year loan, but it costs $2,153.46 more interest and ends two years later. The trade-off is the same in every case: a lower payment now means more interest later. Choose the shortest term whose payment fits your budget, not the longest term whose payment looks comfortable.
How to Use the Monthly Loan Payment Calculator
Use the calculator to run the same three comparisons on your own loan, with your own numbers.
- Enter the loan amount, APR, and term. The result box shows the monthly payment, the total paid, the total interest, and the payoff month.
- Change one input at a time. Raise the amount, then the rate, then the term, and note how the payment moves each time.
- Compare two offers. Run the first offer, write down the payment and the interest, then run the second and compare the totals, not just the payments.
- Test a shorter term. Change 5 years to 3 years and see whether the higher payment fits your budget — the interest saved is usually large.
- Test an extra payment. Add $50 a month and watch the payoff date and the interest change.
On the default loan, adding $50 a month pays the loan off in 54 months instead of 60, cuts total interest from $5,056.92 to $4,492.51, and saves $564.42 plus 6 months of payments. Adding $100 a month pays it off in 49 months, in December 2030, with interest of $4,043.31 — a saving of $1,013.61 and 11 months.
Common Mistakes When Comparing Monthly Payments
Payment comparisons go wrong when the wrong number is compared.
- Comparing payments without comparing interest. A $383.46 payment for 7 years looks cheaper than $500.95 for 5 years, but it costs $2,153.46 more interest.
- Comparing interest rates without fees. The APR includes fees; the interest rate does not. Compare APR to APR.
- Forgetting the payoff date. Two loans with the same payment can end years apart if the terms differ.
- Borrowing the maximum offered. The lender’s maximum is not your budget — every extra dollar costs proportional interest.
- Ignoring the extra costs. Taxes, insurance, fees and PMI sit on top of the principal-and-interest payment.
- Choosing the longest term by default. The lowest payment is not the cheapest loan. It is the most expensive one.
Where You Will Use Monthly Payment Comparisons
The three comparisons apply to every loan decision.
- Personal loans. Compare amounts first: a $20,000 loan costs $400.76 a month at 7.5% for 5 years, against $500.95 for $25,000.
- Auto loans. Compare terms: the average new-car loan of $44,664 at 7.0% costs $884.40 a month over 60 months.
- Student loans. Compare rates: federal rates are fixed by Congress, while private rates depend on your credit score.
- Refinancing. Compare the old loan and the new loan by total interest, not by payment alone.
- Budgeting. A payment of $500.95 a month is affordable only if the rest of the costs fit in your budget too.
Tips for Accurate Results
Five habits keep the comparisons honest.
- Change one input at a time. That isolates the effect of amount, rate, or term.
- Use the APR, not the interest rate. The APR includes fees, so it is the honest price.
- Read the total interest, not just the payment. The payment is what you pay each month; the interest is what the loan costs you.
- Check the payoff date. The term and the first payment month together decide when the loan ends.
- Test the extra payment. Fifty dollars a month is the cheapest way to cut both the interest and the term.
Monthly Loan Payment Quick Answers
The figures people look up most often about monthly loan payments.
| Question | Answer |
|---|---|
| Payment on $25,000 at 7.5% for 5 years | $500.95 a month |
| Payment on $25,000 at 5% for 5 years | $471.78 a month |
| Payment on $25,000 at 12% for 5 years | $556.11 a month |
| Payment on $25,000 at 7.5% for 3 years | $777.66 a month |
| Payment on $25,000 at 7.5% for 7 years | $383.46 a month |
Related tools on this site: the main loan payment calculator, the mortgage calculator for a home loan, the auto loan calculator for a car purchase, and the salary calculator for checking affordability against your income. Bankrate’s loan calculators show the same amortization maths for mortgages.
Frequently Asked Questions
What is the monthly payment on a $25,000 loan at 7.5% for 5 years?
The monthly payment is $500.95, the total paid is $30,056.92, and the total interest is $5,056.92. The loan pays off in November 2031 with the first payment in December 2026.
How much does the interest rate change the monthly payment?
On a $25,000 loan over 5 years, the payment is $471.78 a month at 5%, $500.95 at 7.5%, $531.18 at 10%, and $556.11 at 12%. The interest ranges from $3,306.85 to $8,366.67.
Is a longer loan term better because the payment is lower?
No. A longer term lowers the payment but raises the total interest. On $25,000 at 7.5%, a 7-year loan costs $383.46 a month but $7,210.38 of interest, against $500.95 a month and $5,056.92 of interest over 5 years.
Does doubling the loan double the payment?
Yes, at the same rate and term. A $20,000 loan at 7.5% for 5 years costs $400.76 a month, exactly twice the $200.38 of a $10,000 loan, and the interest is exactly double too.
What is the monthly payment on a $10,000 loan at 7.5% for 5 years?
The monthly payment is $200.38, the total paid is $12,022.77, and the total interest is $2,022.77. The loan pays off in November 2031.
Disclaimer: This calculator is for general information only and is not financial advice. Rates shown are reference ranges, not live quotes, and change weekly. The payment shown is principal and interest only and excludes taxes, insurance, fees and PMI. Check your loan offer before borrowing.