How to use this payment calculator
- Pick what you want to solve for. “Fixed term” gives the monthly payment that repays the loan by a deadline. “Fixed payment” shows how long a payment you can afford takes to clear the balance.
- Enter the loan amount (or current balance) and the interest rate. Use the rate on your loan offer. If you only know the APR, entering it gives a slightly higher, more conservative payment.
- Enter the term in years or months — 60 months and 5 years give the same answer — or the monthly payment you plan to make.
- Optionally add an extra monthly payment or an upfront fee to see the interest you would save and the loan’s APR.
- Review the payoff date, total interest and schedule. Dates assume your first payment is this month. Copy the link to save or share your numbers.
How loan payments are calculated
Personal loans, auto loans and mortgages are usually amortizing: every payment is the same, interest is charged each month on the remaining balance, and whatever is left over reduces the principal. The payment that brings the balance to exactly zero after n months is:
M = P × r(1 + r)^n / ((1 + r)^n − 1)
- M
- monthly payment
- P
- amount borrowed (principal)
- r
- monthly interest rate = annual rate ÷ 12
- n
- number of monthly payments
Worked example: for P = $25,000 at 11.86%, the monthly rate is r = 0.009883 and a 5-year term has n = 60 payments. Then (1 + r)n = 1.8041, so M = $25,000 × 0.009883 × 1.8041 ÷ (1.8041 − 1) = $554.34. Over the loan you pay $33,261, of which $8,261 is interest. Interest takes $247.08 of the first payment but only $5.43 of the last, because the balance it is charged on keeps shrinking.
How long will it take to pay off a loan?
When you fix the payment instead of the term, solve the same equation for n (a spreadsheet’s NPER function does this):
n = −ln(1 − rP / M) / ln(1 + r)
- n
- number of monthly payments (round up; the last one is smaller)
- M
- your monthly payment, which must be more than r × P
Paying $500 a month on the same $25,000 loan gives n = −ln(1 − 0.4942) ÷ ln(1 + 0.009883) = 69.3. That means 69 full payments plus a final payment of $150.29 — 5 years 10 months in all, with $9,650 of interest. If M is not larger than r × P ($247.08 here), the formula has no answer: the payment never covers the interest, so the loan is never repaid.
Monthly payment to pay off a loan in 1 to 10 years
Payments needed to repay common loan amounts at 11.86%, the average rate commercial banks charged on 24-month personal loans as of May 2026 (Federal Reserve G.19 Consumer Credit):
| Term | $10,000 | $25,000 | $50,000 | $100,000 |
|---|---|---|---|---|
| 1 year | $887.83 | $2,219.58 | $4,439.17 | $8,878.33 |
| 2 years | $470.08 | $1,175.20 | $2,350.41 | $4,700.81 |
| 3 years | $331.47 | $828.69 | $1,657.37 | $3,314.75 |
| 4 years | $262.65 | $656.63 | $1,313.26 | $2,626.51 |
| 5 years | $221.74 | $554.34 | $1,108.69 | $2,217.38 |
| 6 years | $194.77 | $486.94 | $973.87 | $1,947.75 |
| 7 years | $175.78 | $439.45 | $878.90 | $1,757.80 |
| 8 years | $161.76 | $404.40 | $808.80 | $1,617.60 |
| 9 years | $151.05 | $377.63 | $755.27 | $1,510.54 |
| 10 years | $142.66 | $356.66 | $713.31 | $1,426.63 |
Each row is the fixed-term result for that amount. Payments scale with the amount borrowed, so a $50,000 loan costs exactly twice as much per month as $25,000 on the same terms.
How long to pay off $10,000 at different monthly payments
Payoff time and total interest on a $10,000 balance at 11.86%. The first month’s interest is $98.83, so any payment must be above that:
| Monthly payment | Payments | Time to pay off | Total interest |
|---|---|---|---|
| $200 | 70 | 5 years 10 months | $3,860 |
| $250 | 52 | 4 years 4 months | $2,788 |
| $300 | 41 | 3 years 5 months | $2,191 |
| $400 | 29 | 2 years 5 months | $1,543 |
| $500 | 23 | 1 year 11 months | $1,197 |
| $750 | 15 | 1 year 3 months | $777 |
| $1,000 | 11 | 11 months | $582 |
Small increases matter most at the low end, where most of each payment goes to interest. For revolving balances with a changing minimum payment, use the credit card payoff calculator.
Fixed term or fixed payment: which should you use?
Use fixed term when you are shopping for a new loan: offers are quoted as an amount, a rate and a term, and you want to know whether the payment fits your budget. Use fixed payment when you already owe money and want a deadline: enter the balance, the rate and what you can pay each month. Both modes use the same math, so a payment of $554.34 in fixed-payment mode returns exactly 5 years for the example loan.
How to lower your monthly payment
There are only three levers: a longer term, a lower rate or a smaller balance. Here is what each does to the example loan:
| Option | Loan | Monthly payment | Total interest |
|---|---|---|---|
| Example loan | $25,000, 5 years, 11.86% | $554.34 | $8,261 |
| Longer term | $25,000, 7 years, 11.86% | $439.45 | $11,914 |
| Lower rate | $25,000, 5 years, 9.86% | $529.46 | $6,767 |
| Borrow less | $20,000, 5 years, 11.86% | $443.48 | $6,609 |
- Longer term: the payment drops by $114.90, but you pay $3,653 more interest. Only stretch the term if you need the monthly room.
- Lower rate: a rate 2 points lower saves $24.89 a month and $1,493 overall. Better credit, a cosigner, a secured loan or simply comparing several lenders can get you there.
- Borrow less: a larger down payment or a smaller purchase lowers both the payment and the interest.
- Refinance later: if rates or your credit improve, a new loan at a lower rate can cut the payment — just compare APRs and any fees first. Our loan calculator and interest rate calculator help with that comparison.
The biweekly payment trick, explained
A year has 52 weeks, so paying half of your monthly payment every two weeks adds up to 26 half-payments = 13 full payments a year instead of 12. That extra payment goes straight to principal, which shortens the loan and cuts interest. The savings come almost entirely from that extra money, not from paying more often.
- On the $25,000 example loan, 13 payments a year finishes about 6 months early and saves about $893.
- On a $300,000 30-year mortgage at 7.03% (the average 30-year fixed rate as of September 24, 2026, Freddie Mac Primary Mortgage Market Survey) and a $2,001.96 monthly payment, it finishes about 6 years 3 months early and saves about $103,385 of interest.
Our estimates add one-twelfth of the payment to every monthly payment, which is the same money as 26 half-payments. You can do that yourself for free. Be wary of paid programs: in 2015 the CFPB ordered Paymap to refund $33.4 million in fees ($295 to enroll, plus $2.50 per debit) after finding that its ads overstated the interest savings and implied a true biweekly schedule, when the company actually held the money and paid the mortgage on the usual monthly schedule. Whatever method you choose, confirm that your lender applies extra money to principal and that the loan has no prepayment penalty.
Interest rate vs. APR
The interest rate sets your payment; the annual percentage rate (APR) also counts upfront finance charges such as origination fees, so it shows the full yearly cost of credit. Under the Truth in Lending Act’s Regulation Z, lenders must disclose the APR and the finance charge before you sign. For example, a $25,000 loan at 11.86% for 5 years with a 5% fee ($1,250) keeps the $554.34 payment, but its APR is 14.14%. Enter a fee under “Extra payments & loan fee” to see the APR of your own offer, and compare APRs, not rates, across lenders.
Frequently asked questions
How do I calculate a monthly loan payment?
Use the amortization formula M = P × r(1 + r)n ÷ [(1 + r)n − 1], where P is the amount borrowed, r is the annual rate divided by 12 and n is the number of monthly payments. For $25,000 at 11.86% over 60 months, r = 0.009883 and the payment is $554.34. Spreadsheets give the same answer with =PMT(rate/12, months, −amount).
What is the monthly payment on a $25,000 loan?
At 11.86% interest, a $25,000 loan costs $828.69 a month over 3 years, $554.34 over 5 years and $439.45 over 7 years. Total interest rises from $4,833 to $8,261 to $11,914 as the term gets longer. Your actual rate depends on your credit, income and the lender.
How long does it take to pay off $10,000 at $300 a month?
At 11.86% interest, paying $300 a month clears a $10,000 balance in 41 payments (3 years 5 months), with $2,191 of total interest. The last payment is smaller than the others. Switch the calculator to “Fixed payment” to test any balance, rate and payment.
Do biweekly payments really save money?
Yes, if the extra money reaches your principal. Paying half your payment every two weeks means 26 half-payments, or 13 full payments, a year instead of 12. On a $300,000 30-year mortgage at 7.03%, that pays the loan off about 6 years 3 months early and saves roughly $103,385 in interest. Adding one-twelfth of a payment to each monthly payment gets nearly the same result without a special program.
Is a lower payment or a shorter term better?
A shorter term costs less overall; a lower payment is easier on your budget. For $25,000 at 11.86%, stretching from 5 years to 7 years lowers the payment by $114.90 a month but adds $3,653 of interest. Choose the shortest term whose payment you can reliably afford, and prepay when you can.
What happens if my payment is less than the interest?
The balance never goes down. Each month the lender charges interest on the balance — $247.08 in the first month on $25,000 at 11.86% — and a payment at or below that amount leaves nothing for principal. The calculator flags this in “Fixed payment” mode and suggests a payment that works.
Should I compare loans by interest rate or APR?
Compare APRs. The interest rate is only the cost of borrowing the principal, while the APR also counts upfront finance charges such as origination fees, and lenders must disclose it under the Truth in Lending Act. A $25,000 loan at 11.86% with a 5% fee has an APR of 14.14% over 5 years.