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Loan Calculator

Use this loan calculator to compare payment, payoff, or borrowing scenarios for loan.

Primary answer
Monthly payment
Inputs to verify
Loan amount, Annual rate, and Loan term
Use type
Use as an estimate that depends on assumptions.
Keyword intent
loan calculator

Calculator

Loan Calculator

Calculates monthly payment from loan amount, annual rate, loan term. Defaults are filled in so you can review a working example before changing inputs.

USD

Principal borrowed before fees, taxes, insurance, or escrow.

%

Use 6.5 for 6.5%. This is divided by 12 as the monthly periodic rate.

months

Whole number of monthly payments.

Result

Result reflects the current submitted inputs.

  • Risk B
  • Reviewed 2026-05-26
  • 3 sources
Monthly payment391.32 USD
Total payment23,479.38 USD
Total interest3,479.38 USD

Breakdown

Monthly periodic rate
0.5417%
Number of payments
60
  • Loan is a fully amortizing fixed-rate installment loan.
  • Payments are monthly and due at the end of each period.
  • Annual rate input is treated as a nominal annual rate/APR divided by 12.
  • Fees, taxes, insurance, escrow, reserve payments, late fees, and lender-specific first-payment timing are excluded.
  • This is an educational estimate, not financial advice or a lender disclosure.

Accuracy notes

Risk level
B
Reviewed
2026-05-26
Sources
3
Primary result
Monthly payment

Formula logic is kept in a pure calculator module with fixtures, source notes, and page-visible assumptions.

Categories

What the result means

Monthly payment is the number to carry forward from this loan calculation. Fixed monthly principal-and-interest payment. Read the payment or payoff number first, then compare interest, balance, and timing outputs before changing a loan decision. Use total payment and total interest to explain why monthly payment moved when an input changed. Run at least one conservative and one optimistic scenario before comparing with a real quote or statement.

Monthly paymentFixed monthly principal-and-interest payment.
Total paymentMonthly payment multiplied by the number of payments.
Total interestTotal payment minus the loan amount.

Use the result this way

  1. Start with Monthly payment, then use supporting outputs only to explain the primary answer.
  2. Verify loan amount, annual rate, and loan term before copying the result.
  3. Keep units consistent with the labels shown in the form, stay within the documented minimum and maximum ranges, and enter percentages as whole percents, such as 6.5 for 6.5%, unless a field says otherwise.
  4. Run at least one conservative and one optimistic scenario before comparing with a real quote or statement.

User job

How to use this calculator

Use Loan Calculator when you need monthly payment, then use total payment and total interest to check the context for planning conversations, quote comparisons, payment checks, and scenario review.

Best for

  • Comparing one financial scenario with another
  • Preparing questions for a lender, advisor, or statement review
  • Reviewing a default example before entering your own loan amount and annual rate.

Check before relying

  • Verify rates, fees, timing, taxes, and local rules against official documents before acting.
  • Loan is a fully amortizing fixed-rate installment loan.
  • Payments are monthly and due at the end of each period.
  • Source context: Microsoft Support, reviewed 2026-05-26.

Next useful step

  • Amortization CalculatorUse next when the borrowing comparison needs amortization inputs such as loan amount and annual rate.
  • Auto Loan CalculatorUse next when the borrowing comparison needs auto loan inputs such as vehicle price and down payment.
  • Boat Loan CalculatorUse next when the borrowing comparison needs boat loan inputs such as boat price and down payment.

Formula

Fixed-rate installment loan payment uses P * r * (1 + r)^n / ((1 + r)^n - 1), with a zero-rate straight-line repayment edge case. Key assumptions: Loan is a fully amortizing fixed-rate installment loan. Payments are monthly and due at the end of each period. Annual rate input is treated as a nominal annual rate/APR divided by 12.

  • Fixed-rate installment loan payment uses P * r * (1 + r)^n / ((1 + r)^n - 1), with a zero-rate straight-line repayment edge case.
  • Loan is a fully amortizing fixed-rate installment loan.
  • Payments are monthly and due at the end of each period.
  • Primary source context: Microsoft Support.

Inputs

Enter loan amount, annual rate, and loan term for planning conversations, scenario checks, and lender or statement comparison. Before calculating, keep units consistent with the labels shown in the form, stay within the documented minimum and maximum ranges, and enter percentages as whole percents, such as 6.5 for 6.5%, unless a field says otherwise. Loan amount: Principal borrowed before fees, taxes, insurance, or escrow. Annual rate: Use 6.5 for 6.5%. This is divided by 12 as the monthly periodic rate. Loan term: Whole number of monthly payments.

Loan amountPrincipal borrowed before fees, taxes, insurance, or escrow.
Annual rateUse 6.5 for 6.5%. This is divided by 12 as the monthly periodic rate.
Loan termWhole number of monthly payments.

Example

Using the default inputs, Loan Calculator returns monthly payment of 391.32 USD. Adjust loan amount, annual rate, and loan term to match your own scenario.

FAQ

How is monthly payment calculated here?

Fixed-rate installment loan payment uses P * r * (1 + r)^n / ((1 + r)^n - 1), with a zero-rate straight-line repayment edge case. The first assumption to check is: Loan is a fully amortizing fixed-rate installment loan.

What does Monthly payment mean for loan?

Read the payment or payoff number first, then compare interest, balance, and timing outputs before changing a loan decision. Secondary values such as total payment and total interest are there to explain the primary answer, not to replace it.

What should I enter for Loan amount?

Principal borrowed before fees, taxes, insurance, or escrow. Use USD for this field. Keep units consistent with the labels shown in the form, stay within the documented minimum and maximum ranges, and enter percentages as whole percents, such as 6.5 for 6.5%, unless a field says otherwise.

How does Annual rate change monthly payment?

Use 6.5 for 6.5%. This is divided by 12 as the monthly periodic rate. Changing it can alter monthly payment because the formula uses the submitted inputs together. Also compare APR period, compounding, fees, payment timing, taxes, insurance, and extra-payment assumptions.

Why does the loan example show 391.32 USD for monthly payment?

The default inputs produce 391.32 USD for monthly payment. Treat that as a format and scale check, then replace every default value with your own inputs.

What should I compare before using the loan payment result?

Compare the rate period, payment timing, fees, taxes, escrow items, payoff assumptions, and the actual quote or statement that governs the decision.

Sources

Last reviewed: 2026-05-26

  • Reviewed 2026-05-26
    PMT functionMicrosoft Support. Payment inputs, monthly rate consistency, end-of-period payment assumption, total paid as payment multiplied by number of periods, and published PMT example.
    Scope
    Financial function documentation for fixed payments and constant interest rate loans.
    Supports
    Payment inputs, monthly rate consistency, end-of-period payment assumption, total paid as payment multiplied by number of periods, and published PMT example.
  • Reviewed 2026-05-26
    What is the difference between a loan interest rate and the APR?Consumer Financial Protection Bureau. APR assumption notes, fee exclusion warning, and page-visible finance disclaimer.
    Scope
    Consumer finance guidance for APR versus interest rate.
    Supports
    APR assumption notes, fee exclusion warning, and page-visible finance disclaimer.
  • Reviewed 2026-05-26
    Truth in Lending Act: Annual Percentage Rate DefinitionConsumer Financial Protection Bureau. Warning that legal APR disclosures depend on amount financed, finance charges, timing, and payment schedule, and should not be treated as a simple interest-rate-only calculation.
    Scope
    Regulatory examination guidance for APR as a closed-end credit disclosure measure.
    Supports
    Warning that legal APR disclosures depend on amount financed, finance charges, timing, and payment schedule, and should not be treated as a simple interest-rate-only calculation.

Disclaimer

This borrowing calculator is for educational payment and payoff estimates only. It is not a lender quote, credit approval, legal disclosure, tax advice, or a substitute for reviewing contracts, fees, escrow items, and local rules.