About the Loan Payment Calculator
A fixed-rate loan is repaid in equal instalments that cover both the interest and part of the balance. This calculator works out that instalment for any loan amount, interest rate and term. You can choose monthly payments, the usual case, or bi-weekly, weekly or quarterly payments if your lender or your pay schedule works that way. It then shows the total you will repay, the interest and the interest as a share of the amount borrowed. It is a general tool for car loans, personal loans, business loans and student loans, wherever the payments are level.
Updated October 2026
How to use the Loan Payment Calculator
- 1Enter the loan amount and the yearly interest rate.
- 2Enter the term and choose years or months.
- 3Choose how often you will pay.
- 4Read the payment and the number of payments.
- 5Check the total repaid and the interest.
Worked example
A 20,000 loan at 8 percent over 5 years costs about 405.53 a month. In total you repay 24,332, of which 4,332 is interest, or 21.7 percent of the amount borrowed. The same loan paid weekly needs 260 payments of about 93.39, totalling 24,281, so the interest is about 4,281. If you stretch the term to 7 years, the monthly payment falls to about 311.72 but total interest rises to roughly 6,185.
Always compare loans on the total cost, not on the payment alone. A lower payment from a longer term can hide thousands of extra interest. If your budget is tight, choose the longer term for safety but plan to make extra payments when you can; most loans let you pay more without a penalty. Make the extra payment explicitly toward the principal, and check that the lender applies it that way, so the balance falls faster and the interest drops with it.
Choosing a term
- Shorter terms: higher payments, less interest.
- Longer terms: lower payments, more interest.
- Match the term to how long the purchase will be useful.
- Check there is no penalty for early repayment.
- Keep payments under about 36 percent of your income, including other debts.
Getting a better deal
Improve your credit record, compare several lenders, and think about a larger down payment or a secured loan, which usually has a lower rate. Even half a percent off the rate saves hundreds over the term of a large loan. Use the calculator to compare offers on the same footing before you choose.
Related tools
The Loan Calculator and Personal Loan Calculator offer other views, the Auto Loan Calculator and Student Loan Calculator cover specific loans, and the Debt Payoff Calculator helps you plan to clear what you owe.
Features
- Monthly, bi-weekly, weekly and quarterly payments
- Term in years or months
- Total repaid and interest
- Interest as a share of the loan
- Fixed-rate loans
- Any currency
Frequently asked questions
How do I calculate a loan payment?
The payment equals the loan amount times the periodic rate, divided by one minus (1 plus the rate) raised to minus the number of payments. For 20,000 at 8 percent over 5 years, the monthly payment is about 405.53.
Does paying weekly or bi-weekly save money?
Slightly, if each payment is the same fraction of the monthly one and you pay more often, because the balance falls sooner. Here the payment is recalculated for the chosen frequency, so the total interest differs only a little: about 4,282 weekly against 4,332 monthly in the example.
What is amortisation?
The gradual repayment of a loan through scheduled payments. Early payments are mostly interest and later ones mostly principal, even though the total payment is the same.
What if my loan has a variable rate?
The payment may change when the rate changes. Use the current rate for an estimate, and re-run the calculation after each rate change.
Are fees and insurance included?
No. Origination fees, insurance and other charges are extra. The Personal Loan Calculator includes a fee and shows the APR.
What is a balloon payment?
A large final payment that remains after smaller regular payments. This calculator assumes the loan is fully repaid by the end of the term, with no balloon.