Loan payment calculator

Loan Payment Calculator | Free Monthly Payment & Amortization Tool

Loan Payment Calculator: Estimate Your Monthly Payment

Before you sign for a mortgage, auto loan, or personal loan, run the math. This calculator computes your monthly payment from the standard amortization formula, then shows the total interest you’ll pay over the life of the loan. Use the rate and term reference tables below to gut-check whether the deal you’re being offered is actually competitive.

Quick Loan Payment Estimator

Enter your loan amount, annual interest rate, and term to estimate your monthly payment and total cost.

Total Interest $0
Total Paid $0
Estimated Monthly Payment: $0 Enter loan details to compute payment

I. Typical Rate Ranges by Loan Type (2026)

Rate ranges vary by credit score, loan-to-value, and lender — but if your offer falls outside these bands, shop again.

Loan TypeTypical RateCommon TermNotes
30-Year Fixed Mortgage6.25% – 7.25%30 yearsMost common; longest amortization
15-Year Fixed Mortgage5.50% – 6.50%15 yearsHigher payment, dramatically less interest
5/1 ARM5.75% – 6.75%5-yr fixed, then floatsLower start; rate risk after fixed period
Auto Loan (New, 60-mo)6.50% – 9.00%5 yearsHighly credit-score sensitive
Auto Loan (Used, 60-mo)8.00% – 12.00%5 yearsUsed vehicles carry a 1.5–3 pt premium
Personal Loan (Prime credit)9.00% – 14.00%3–5 yearsUnsecured; rate jumps with weaker credit
Credit Card APR20.00% – 30.00%RevolvingWorst common debt — pay off first

II. How Term & Rate Affect Total Cost

A monthly payment in isolation hides the total bill. The same $300,000 loan tells very different stories depending on rate and term.

Scenario ($300k loan)Monthly PaymentTotal InterestTotal Paid
15 yr @ 6.0%$2,532$155,683$455,683
20 yr @ 6.5%$2,237$236,830$536,830
30 yr @ 7.0%$1,996$418,527$718,527
30 yr @ 8.5%$2,307$530,470$830,470

Expert Tips for Lower Loan Costs

  • Shop at Least Three Lenders: Mortgage rates can vary by 0.25%–0.5% between lenders for the same borrower. On a $300k 30-yr loan, that’s $15k–$30k in lifetime interest — pulling three quotes is the highest-ROI hour you’ll spend.
  • Choose the Shortest Term You Can Afford: A 15-yr mortgage runs ~50% higher monthly than 30-yr but cuts total interest by 60–70%. If the budget supports it, the math is overwhelming.
  • Fix Your Credit Score First: Going from 680 to 760 typically drops mortgage rates by 0.5%+ and auto loans by 1–3 points. Pull your free credit report 90 days before applying and dispute errors.
  • Watch Out for ARM Resets: A 5/1 ARM looks great in year 1 — but if rates rise 2 points by year 6, your payment can jump 15–25%. Only take an ARM if you’ll genuinely be out of the property before the reset.
  • Make Biweekly Payments: Pay half your monthly payment every two weeks instead of one full payment monthly. You sneak in one extra full payment per year, knocking 4–7 years off a 30-yr mortgage with no other change.
  • Avoid Loan-Term Extension Tricks: Auto and personal loans are increasingly offered at 72–84 months to keep payments low. The headline payment shrinks, but you pay 30–50% more interest and stay underwater on the asset longer.

Methodology: Monthly payment uses the standard amortization formula M = P × r(1+r)n / ((1+r)n − 1) where r is the monthly rate (annual ÷ 12) and n is the total number of months. Total interest = (M × n) − P. Rate ranges are illustrative U.S. averages as of 2026 and depend on your credit, lender, and loan structure. This calculator does not include property taxes, insurance, PMI, or fees — for true monthly housing cost on a mortgage, add those separately.

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