How is the monthly payment calculated?

It uses the standard amortizing-loan formula: the principal times the monthly rate times (1 + monthly rate) to the power of the number of months, divided by that same power minus one. The monthly rate is the annual rate divided by 12.

What does total interest mean?

It is the total amount you pay back minus the amount you borrowed. It is the cost of the loan over its full term.

What happens at a 0% rate?

With no interest, the monthly payment is simply the loan amount divided by the number of months, and the total interest is zero.

Does this include fees, insurance, or taxes?

No. The calculator works on the loan amount, rate, and term only. Fees, insurance, and taxes are not part of the payment shown.

Which currency does it use?

The currency follows the site language. The payment math is identical in every market.

Can I share a calculation?

Yes. Use Share to copy a link that reopens the calculator with the same amount, rate, and term.

Loan calculator

Enter the loan amount, the annual interest rate, and the term in years. The calculator shows the monthly payment, the total you pay back, and the total interest as you type.

Use it to find the fixed monthly payment on a loan, plus the total amount repaid and how much of that is interest.

Monthly payment

$1,199.10

Principal Interest

Total paid: $431,676.38
Total interest: $231,676.38

The result updates as you type. The bar splits the total paid into the amount you borrowed and the interest you pay on top.

How does it work?

When the rate is 0%, the payment is simply the principal divided by the number of months. You supply the interest rate yourself; the calculator does not look one up.

Loan payment formula

M = P\cdot\frac{r\,(1+r)^{n}}{(1+r)^{n}-1}

M: Monthly payment.
P: Loan principal (amount borrowed).
r: Monthly interest rate (annual rate ÷ 100 ÷ 12).
n: Total number of monthly payments (years × 12).

200,000 at 6% over 30 years gives a monthly payment of about 1,199.10.

Expert tips

This is an illustrative payment estimate. Actual loan terms, fees, and credit assessment can change the result.

Method & sources

The loan is fully amortizing with a fixed interest rate and equal monthly payments. The rate is the same for the whole term and you supply it yourself; the calculator does not look up market rates. Payments are made monthly, with the first payment one month after the loan starts.

Sources

Where this method comes from — use these references to understand the formula, assumptions, and limits.

What is an amortization schedule? — U.S. Consumer Financial Protection Bureau, verified 2026-06-10

How we calculate

The loan is fully amortizing with a fixed interest rate and equal monthly payments.
The rate is the same for the whole term and you supply it yourself; the calculator does not look up market rates.
Payments are made monthly, with the first payment one month after the loan starts.
The currency shown follows the site language; the payment math is the same in every market.
Fees, insurance, taxes, and changes to the rate over time are not included.

Limitations

This is an illustrative payment estimate. Actual loan terms, fees, and credit assessment can change the result.

Rounding

Payments and totals are rounded to two decimals for display. The calculation uses full precision.

What this calculator does

An amortizing loan is repaid in equal monthly payments over a fixed term. Each payment covers the interest due that month and chips away at the balance. This calculator uses the standard payment formula to find that fixed monthly amount, then shows the total you repay and how much of it is interest.

How to use it

Enter the loan amount (the principal).
Enter the annual interest rate as a percentage.
Enter the term in years.
Read the monthly payment, total paid, and total interest below.

A worked example

A 200,000 loan at 6% over 30 years has a monthly payment of about 1,199.10. Over the full term you repay about 431,676, of which roughly 231,676 is interest.

Where the interest rate comes from

You enter the rate yourself. The calculator does not look up or fetch a market rate. Use the rate quoted by your lender or offer, and make sure it is the annual rate, not a monthly one.

Common mistakes

Entering a monthly rate where an annual rate is expected. Use the annual figure; the calculator divides by 12.
Confusing the monthly payment with the total cost. The total paid is the payment multiplied by the number of months.
Forgetting that fees, insurance, and taxes are not part of this payment.

When it's useful

Personal loans, car loans, and mortgages, or any quick check of what a fixed-rate loan will cost each month and over its life.

FAQ

How is the monthly payment calculated?: It uses the standard amortizing-loan formula: the principal times the monthly rate times (1 + monthly rate) to the power of the number of months, divided by that same power minus one. The monthly rate is the annual rate divided by 12.
What does total interest mean?: It is the total amount you pay back minus the amount you borrowed. It is the cost of the loan over its full term.
What happens at a 0% rate?: With no interest, the monthly payment is simply the loan amount divided by the number of months, and the total interest is zero.
Does this include fees, insurance, or taxes?: No. The calculator works on the loan amount, rate, and term only. Fees, insurance, and taxes are not part of the payment shown.
Which currency does it use?: The currency follows the site language. The payment math is identical in every market.
Can I share a calculation?: Yes. Use Share to copy a link that reopens the calculator with the same amount, rate, and term.

Related calculators

Embed this calculator

Add this calculator to your own site. The snippet includes the calculator iframe and a small attribution link:

<iframe src="https://wisecalcs.com/embed/en/loan-calculator" width="100%" height="520" style="border:0" loading="lazy"></iframe>
<p>Calculator from <a href="https://wisecalcs.com/en/loans-mortgages/loan-calculator">WiseCalcs</a></p>