Monthly loan payments are based on the loan amount, interest rate, repayment term, and payment schedule. The higher the rate or shorter the term, the higher the monthly payment.
Use the Loan Calculator to estimate payments for personal loans, business loans, and other fixed-rate loans. For weekly or bi-weekly options, use the Payment Calculator.
Monthly payment formula
Most fixed loans use an amortization formula. The payment covers interest first, then principal. Over time, the interest portion shrinks and the principal portion grows.
Example
If you borrow $10,000 at 8% for 5 years, your payment depends on monthly compounding and the number of payments. A loan calculator does the formula instantly and shows total interest.
APR matters
APR includes some fees, so it can be a better comparison than interest rate alone. This matters for US and Canadian borrowers comparing banks, credit unions, online lenders, and dealer financing.
See the full payment schedule
After estimating your payment, use the Amortization Calculator to see how much of each payment goes toward principal and interest.