Use this loan calculator to determine your monthly payment, interest rate, number of months or principal amount on a loan. Find your ideal payment by changing loan amount, interest rate and term and seeing the effect on payment amount.
You can also create and print a loan amortization schedule to see how your monthly payment will pay-off the loan principal plus interest over the course of the loan.
- Loan Amount
- The original principal on a new loan or principal remaining on an existing loan.
- Interest Rate
- The annual nominal interest rate, or stated rate of the loan.
- Number of Months
- The number of payments required to repay the loan.
- Monthly Payment
- The amount to be paid toward the loan at each monthly payment due date.
- This calculator assumes interest compounding occurs monthly as with payments. For additional compounding options use our Advanced Loan Calculator.
When you take out a loan, you must pay back the loan plus interest by making regular payments to the bank. So you can think of a loan as an annuity you pay to a lending institution. For loan calculations we can use the formula for the Present Value of an Ordinary Annuity:
- PV is the loan amount
- PMT is the monthly payment
- i is the interest rate per month in decimal form (interest rate percentage divided by 12)
- n is the number of months (term of the loan in months)
Find the Loan Amount
To calculate the loan amount we use the loan equation formula in original form:
Find the Number of Months
To find the number of months we solve the equation for n:
Find the Monthly Payment
To find the monthly payment we solve the equation for PMT:
Find the Interest Rate
Finding the interest rate is a complex calculation involving the Newton-Raphson Method which you can read about at MathWorld.
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