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Payment Calculator

General payment calculator for loans with flexible compounding options.

Inputs

Payment per monthly period
$396.02
60 periods • $23,761.44 total
Total Interest
$3,761.44
Monthly Equivalent
$396.02

Payment Summary

Payment frequency matches the compounding frequency you select. The effective monthly equivalent makes it easier to compare this loan against a standard monthly-payment loan.

What is the Payment Calculator?

A payment calculator is a free online tool that calculates the periodic payment for any loan based on principal, interest rate, number of periods, and compounding frequency. It handles flexible payment schedules — weekly, biweekly, monthly, quarterly, or annual — and any compounding convention.

Payment Calculator formula

For periodic compounding, M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the principal, r is the periodic interest rate (annual rate ÷ periods per year), and n is the total number of payments. Total paid = M × n, and total interest = (M × n) − P.

How to use the Payment calculator

  1. 1Enter the loan principal amount.
  2. 2Enter the annual interest rate.
  3. 3Enter the total number of payments or the loan term.
  4. 4Choose the payment and compounding frequency (weekly, monthly, quarterly, or annually).
  5. 5Review the periodic payment, total interest, and total cost.

Example calculation

For a $15,000 loan at 8% APR repaid in 36 monthly payments, the monthly payment is $470.01, with total interest of $1,920.36 over the 3-year term and a total cost of $16,920.36.

Frequently asked questions

How do you calculate monthly payment on a loan?
Use the amortization formula M = P × [r(1+r)^n] / [(1+r)^n − 1], with r as the monthly rate (annual ÷ 12) and n as the number of monthly payments. Most spreadsheet apps also have a PMT(rate, nper, pv) function that does the same thing.
What is the formula for monthly payment with simple interest?
For a simple-interest installment loan, monthly payment = (P + P × r × t) / n, where P is principal, r is the annual rate, t is years, and n is the number of monthly payments. This is the standard formula used for many auto loans in the U.S.
How does payment frequency affect total interest?
More frequent payments (e.g., biweekly instead of monthly) reduce total interest because principal is paid down sooner. Switching from monthly to biweekly on a 30-year mortgage typically cuts 5–7 years off the term.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. The APR includes the interest rate plus lender fees and points, expressed as an annualized rate. APR is the better number for comparing loan offers side by side.

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