Formula
The payment is the standard fixed-rate amount that pays the balance down to zero:
Payment = P × r × (1 + r)^n / ((1 + r)^n − 1)
P is the amount borrowed, r is the annual rate divided by 12, and n is the number of months. At a zero rate, the amount is split evenly across the months. This page leads with the payment. Total interest, including a second rate, is on the loan interest page, and the amortization table is on the loan calculator.
Assumptions
- The rate stays fixed and payments are monthly.
- Each payment is rounded to the nearest cent, and the last payment clears any remaining cents.
- Fees, insurance, and extra principal are not included.
Worked example
A $10,000 loan at 6% for 5 years has a monthly payment of $193.33.
Input definitions
- Loan amount
- The principal you borrow.
- Annual interest rate
- The fixed yearly rate, not an APR that includes fees.
- Term
- Years plus up to 11 extra months.
Limitations
This is an estimate, not a loan offer. A lender may add fees, round differently, or use a daily interest method. The currency control changes the symbol only.
Questions
Why is the first payment split shown?
Early payments are mostly interest. The two rows show how the first monthly payment divides between interest and principal.
Where is the full schedule?
The loan calculator lists every month. This page answers the payment amount.