How a monthly loan payment is calculated
This loan monthly payment calculator estimates the fixed monthly installment of a standard amortized loan (also called an installment loan). You enter the borrowed amount, the annual interest rate, and the loan duration in years, and the tool computes the monthly payment instantly. All calculations run locally in your browser.
Most mortgages and personal loans are repaid using a fixed payment each month. That payment generally includes two parts: interest (the cost of borrowing) and principal (the portion that repays the borrowed amount). Early in the loan, the interest share is usually higher; later, more of the payment goes to principal.
Loan payment formula used
This calculator uses the classic amortization formula with fixed monthly payments. It converts the annual rate to a monthly rate and applies it over the total number of months. Results are an estimate and may differ from a bank offer due to fees, insurance, rounding rules, or different compounding conventions.
What this tool does not include
For clarity, the computation does not include optional costs such as loan insurance, notary fees, origination fees, taxes, or variable-rate scenarios. If you want a more realistic budget, you can add those costs on top of the monthly payment result.
Note: This tool is for informational purposes only and does not provide financial advice.