💵 Free Tool
Loan Calculator
Calculate monthly payments, total interest, and total cost for any loan.
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monthly payment
About Loan Calculations
How is monthly payment calculated?
The standard formula uses your principal, monthly interest rate, and number of payments. It assumes equal monthly payments where each payment covers interest first, then reduces the principal.
What affects my loan payment most?
Interest rate and loan term have the biggest impact. A higher rate or longer term means more total interest paid. Doubling your monthly payment can cut years off a loan and save thousands in interest.