What will my loan payment be?

Estimate fixed monthly loan payments, total paid and total interest from amount, annual rate and term, with fees and daily-interest limitations. Calculate it clearly with Figur.

Calculate a level monthly loan payment

Let P be loan amount, r = entered APR ÷ 100 ÷ 12 and n = years × 12. Monthly payment M = P × r ÷ (1 − (1 + r)^(−n)); at 0% use P ÷ n. Total paid is the unrounded M × n and total interest is M × n − P, with displayed money rounded to cents. Here the APR field is used as an annual rate for monthly interest; it does not reverse-engineer a lender's fee-inclusive APR.

Method and assumptions

r = APR ÷ 1,200; n = years × 12; M = amount × r ÷ (1 − (1 + r)^(−n)), or amount ÷ n at 0%. Interest = unrounded M × n − amount.

  • The rate and monthly payment are constant; payments are monthly over the entered term.
  • Origination fees, taxes, insurance, extra payments and daily-interest calendars are not modeled.
  • Totals use the unrounded payment, not the displayed cents multiplied by payment count; actual lender rounding can differ.

Educational planning estimate, not a loan quote or financial advice. Confirm dates, fees, payment rules and actual figures with your lender.

Sources and references

Worked example

Borrow $10,000 at an entered annual rate of 6% for 3 years.

r = 0.005 and n = 36. M = $304.22 per month; using the unrounded payment gives $10,951.90 total paid and $951.90 interest.

Frequently asked questions

Can I enter a fee-inclusive APR?

The field is treated as an annual interest rate divided by 12. A disclosed APR can include fees, so use the contract rate to compare principal-and-interest payments and check fees separately.

What happens at zero interest?

The payment is simply loan amount divided by the number of months. A $12,000 loan over 2 years at 0% is $500 per month and $0 interest.

Why can the total differ from payment times months?

The displayed payment is rounded to cents, while total paid uses the unrounded formula. Lender schedules may also adjust the final payment.

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