Loan Payment Calculator
With amount borrowed 25000 usd, annual interest rate (apr) 7 percent, term 60 months, loan payment comes to $495.03 — monthly payment. It is reached in 6 steps, the last of which is 25000 * 0.0058333 / (1 - pow(1 + 0.0058333, -60)), and each one is printed on the page with its numbers filled in. The formula is the one published by CFPB, not an approximation fitted to it.
Monthly payment and total interest on any fixed-rate instalment loan — car, personal or student.
Formula and sources checked · How we check
Amount borrowed 25000, Annual interest rate (APR) 7, Term 60 months, Interest compounds Monthly (APR)
$495.03
Monthly payment for the inputs in this link. Editing a field recomputes the calculator below; this figure holds the answer the page was loaded with.
It is written into the HTML rather than drawn by a script, so a search engine reading this page without running JavaScript still finds an answer.
- Number of payments
round(60 / 12 * 12)60 payments- Effective annual rate
(pow(1 + 0.0058333, 12) - 1) * 1007.229 %- Payment
25000 * 0.0058333 / (1 - pow(1 + 0.0058333, -60))495.03- Total paid
495.02996 * 6029,701.798- Total interest
29701.798 - 25000$4,702- Interest as a share of what you borrowed
4701.7978 / 25000 * 10018.807 %
Ask about this in the chatCompare: 60 months against 84Loan Payment by Term Chart
Principal against interest
Payment schedule
A shorter loan front-loads less interest, so this curve is far straighter than a mortgage of the same rate.
| Group | Interest | Principal | Balance |
|---|---|---|---|
| Group of 12 1 | $1,612.91 | $4,327.45 | $20,672.55 |
| Group of 12 2 | $1,300.08 | $4,640.28 | $16,032.27 |
| Group of 12 3 | $964.63 | $4,975.73 | $11,056.54 |
| Group of 12 4 | $604.94 | $5,335.42 | $5,721.12 |
| Group of 12 5 | $219.24 | $5,721.12 | $0.00 |
The table above groups the 60 payments into 5. The amortisation schedule prints every one of them, with the split between interest and principal.
Worked example
$32,000 at 7.5% over 5 years is $641/mo and $6,473 in interest. Stretching the same loan to 84 months drops the payment to $491 but pushes interest to $9,229 — $2,756 more for $150 a month of relief.
How to work it out yourself
- 1.Take the amount borrowed after any deposit or trade-in.
- 2.Convert the APR to a monthly rate by dividing by 1,200.
- 3.Payment is principal × rate ÷ (1 − (1 + rate)^−months).
- 4.Compare offers on total interest, not on the monthly payment — a longer term always looks cheaper per month and costs more overall.
Payment and interest on $32,000 at 7.5% by term
| Term (months) | Monthly payment | Total interest |
|---|---|---|
| 24 | $1,439.99 | $2,560 |
| 36 | $995.40 | $3,834 |
| 48 | $773.72 | $5,139 |
| 60 | $641.21 | $6,473 |
| 72 | $553.28 | $7,836 |
| 84 | $490.82 | $9,229 |
The payment falls roughly in proportion to the term; the interest rises much faster.
The formula
- Number of payments
round(60 / 12 * 12) - Effective annual rate
(pow(1 + 0.0058333, 12) - 1) * 100 - Payment
25000 * 0.0058333 / (1 - pow(1 + 0.0058333, -60)) - Total paid
495.02996 * 60 - Total interest
29701.798 - 25000 - Interest as a share of what you borrowed
4701.7978 / 25000 * 100
Source: CFPB — auto loans and instalment credit, Federal Reserve G.19 consumer credit release
Questions people actually ask
- Is this an EMI calculator?
- It is the same arithmetic. EMI — equated monthly instalment — is the term used in India and much of South Asia for what is called a monthly payment elsewhere, and the formula is identical: principal times the monthly rate, divided by one minus (1 + monthly rate) to the power of minus the number of months. Enter the principal, the annual rate and the term in months and the answer is your EMI.
- Is APR the same as the interest rate?
- Not quite. APR folds in origination and other lender fees, so it is the number to compare offers on. This calculator treats the figure you enter as the effective rate, which matches APR for most simple-interest car and personal loans.
- Why does a longer term cost so much more?
- Interest accrues on the outstanding balance every month, so a longer term means more months of a higher balance. The payment falls roughly linearly; the interest rises much faster.
- Does this handle precomputed interest?
- No. This is simple-interest amortisation, which is what nearly all US car and personal loans use. Precomputed-interest contracts fix the total interest upfront, so paying early saves you far less — check the contract for a rebate clause.
Related
- Mortgage Payment CalculatorMonthly principal-and-interest payment on a fixed-rate mortgage, plus total interest paid over the full term.
- Credit Card Payoff CalculatorHow many months a card balance takes to clear at a fixed monthly payment, and what the interest costs.
- Student Loan CalculatorWhat a student loan costs to repay, including interest that builds while you are still studying and the salary the payment implies you need.
- Business Loan CalculatorPayment and true cost of a business loan once origination and packaging fees are taken out of the amount that actually lands in the account.
- Amortization CalculatorFull payment schedule for a loan, with the option to pay biweekly or add extra each month and see what it saves.
- Auto Loan CalculatorCar payment including sales tax, fees, and a trade-in — with the negative equity most calculators quietly leave out.
Where this one stops
Worked out already
The same calculator with the numbers filled in. Each one computes on the server, so the answer is in the page rather than waiting on a click.
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