Payment Calculator

Solve for monthly payment, loan amount, or loan term — you choose what to calculate

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$20,000
$500$1M
7.0%
0.1%30%
5 years
1 yr30 yrs
Monthly Payment
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Loan Amount
Loan Term
Total Interest
Total Cost

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Term Monthly Total Interest Total Cost
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// Remaining Balance Over Time

Principal Remaining
Interest Paid

Payment Schedule

Period Payment Principal Interest Balance
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How the Payment Calculator Works

This calculator can solve for any one of three loan variables — monthly payment, loan amount, or loan term — when you know the other two. Select what you want to calculate using the tabs above, fill in the known values, and the answer appears instantly.

Solve for Monthly Payment

The most common use case. Enter your loan amount, interest rate, and term to find out exactly what your monthly payment will be. Useful for budgeting before taking out any loan.

Solve for Loan Amount

Know what monthly payment you can afford? Enter that payment, the interest rate, and term to find out the maximum loan amount you qualify for. This is the "how much can I borrow?" question.

Solve for Loan Term

Already have a loan or know your payment? Enter the loan amount, interest rate, and your desired payment to see exactly how many months it will take to pay off.

Why Compare Scenarios?

The comparison table shows how different loan terms affect your monthly payment and total interest. A shorter term means higher monthly payments but dramatically less interest paid overall. For example, a 5-year loan typically costs far less in total interest than a 10-year loan at the same rate — even though the monthly payments are higher.

Solving the Loan Equation From Any Direction

Built and verified by Andrius R. · Updated June 2026

Most loan tools answer one question: "what's the payment?" But the payment formula has four variables — amount, rate, term, payment — and real decisions usually start from a different one: I can afford $X a month; what can I borrow? This calculator solves whichever variable you're missing, and each direction has its own use and its own trap.

Direction 1: payment from the loan (the standard)

The amortization formula: M = P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), with r the monthly rate and n the number of payments. $20,000 at 8% over 5 years → ~$406/month. Fine — but it frames the question backwards for budgeting, because it starts from the lender's number, not yours.

Direction 2: how much loan a payment buys (the budgeting direction)

Worked example — "I can afford $400/month"
At 8% APR, term…$400/month supports
3 years~$12,800
5 years~$19,700
7 years~$25,700

Same budget, doubled borrowing power between 3 and 7 years — which is exactly how sellers expand what you "can afford": not by lowering the price, but by stretching n. The honest companion number is total interest: ~$1,600, $3,700 and $7,900 respectively. Starting from your payment keeps you in charge; just never let the term float unexamined.

Direction 3: how long a payment takes (the payoff direction)

Given a balance, rate and a payment you can sustain, solving for n answers "when am I free?" — the central question of debt payoff. Its dark twin matters more: if your payment doesn't exceed the monthly interest (balance × r), n is infinite — the balance never falls. That's the mathematical core of the minimum-payment trap covered in the credit card calculator, and it's why this solver will warn you when a payment is too small to terminate.

Direction 4: what rate you're really being charged

Solving for the rate exposes deals that hide it. "Borrow $1,000, repay $100/month for 12 months" sounds like 20% — $200 fee on $1,000 — but because the balance falls all year, the implied APR is roughly 35%. Buy-now-pay-later plans, rent-to-own and "fee not interest" lenders all live in this gap between the sticker arithmetic and the true rate. If a deal quotes everything except the APR, solve for it before signing; regulators force APR disclosure on conventional loans precisely because it's the only honest comparison number.

Reading the four-way trade-off

  • Rate moves total cost more than people feel: on a 5-year $20k loan, each percentage point is ~$550 of lifetime interest — shopping three lenders is paid work.
  • Term moves the payment most, and the cost with it — the universal lever, in both directions.
  • Small payment increases punch hard near the end of the scale: raising $400 to $450 on the 5-year example clears the loan ~7 months early.
  • Round numbers are negotiation artifacts: a payment of exactly your stated budget means the term was solved to fit it. Run this calculator before the salesperson does.
Disclaimer: CalculatorXP calculators are for informational purposes only and do not constitute financial or legal advice. Calculations are estimates. Always confirm figures with your lender before signing any loan agreement.

// Affordability

A common rule of thumb: keep total monthly debt payments (including this loan) below 36% of gross monthly income.

// Total Cost

Always compare total cost, not just monthly payment. A longer term lowers your payment but can double the total interest paid.

// Rate Shopping

Even 0.5% difference in rate makes a big difference over a long loan. Always compare at least 3 lenders before signing.

// Early Payoff

Check for prepayment penalties before making extra payments — some lenders charge fees for paying off early.