Loan Payment Calculator – Monthly Installment & Interest
Estimate a fixed-rate monthly loan installment, total repayment and interest from principal, annual rate and years. Understand the amortization assumptions.
A fixed-rate amortizing loan has scheduled payments that cover interest and reduce the outstanding principal. The calculator produces a mathematical estimate based on the principal, annual interest percentage and number of years you enter. It is not a lender's quotation.
How it works
Monthly rate r = annual rate ÷ 100 ÷ 12 and payment count n = 12 × years. Payment = P × r × (1+r)^n ÷ ((1+r)^n − 1); for zero rate, payment = P ÷ n.
Example
A 120,000 loan at 12% annual interest over 12 months uses a 1% monthly rate. Its estimated monthly payment is approximately 10,661.85 before fees, taxes or insurance.
How to use
- Enter only the principal amount actually borrowed.
- Enter the annual interest percentage and the number of years of scheduled repayment.
- Compare monthly installment with total repayment and total interest; separately read the lender's fee, APR and early-repayment terms.
Key features
- Fixed-rate amortization estimate
- Distinct monthly, total and interest values
- Explicit zero-interest calculation
Common uses
- Check whether an installment fits a monthly budget
- Compare a short versus long loan term
- Understand how interest affects the total repaid
Limitations to know
Actual loan offers may include fees, insurance, variable rates, taxes, payment schedules or early repayment rules. This mathematical model does not evaluate eligibility or offer financial advice.
Frequently asked questions
Is this the same mathematics as EMI?
For fixed-rate installment loans, yes. EMI and monthly loan payment normally use the same amortization formula.
Why is total repayment more than the amount borrowed?
The difference represents interest under the model; actual fees may raise the cost further.
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