SASQuick Tools

Money

Loan Payment Estimator

Estimate the monthly payment on a fixed-rate loan such as a car loan, personal loan, or mortgage.

  1. Enter the amount borrowed.
  2. Enter the yearly interest rate (APR).
  3. Enter the term in years or months.
USD
%
years

Not financial advice. Results are estimates based only on the numbers you enter. They are for general information and planning, and are not financial, tax or legal advice. Check important decisions with a qualified adviser or your lender.

How it works

Enter the amount you will borrow, the yearly interest rate, and the length of the loan. The calculator turns the yearly rate into a monthly rate and uses the standard amortization formula to find the fixed payment that pays the loan off exactly by the end of the term.

Early payments are mostly interest because the balance is high; later payments are mostly the original amount borrowed. The calculator also adds up all payments to show the total interest. A zero-rate loan is handled separately by dividing the amount by the number of months.

Try changing one input at a time to see what really drives the cost. Shortening the term usually raises the monthly payment but cuts total interest sharply, while a lower rate reduces both. Comparing two or three scenarios side by side is a quick way to see whether a cheaper monthly payment is worth the extra interest over the life of the loan. The figures are estimates; your lender may round differently or add fees and insurance.

Formula

r = Annual rate ÷ 12 ÷ 100, n = number of months

Payment = P × r ÷ (1 − (1 + r)^−n)

If r = 0: Payment = P ÷ n

Worked examples

$200,000 at 6% over 30 years (360 months): about $1,199.10 per month and $231,676 in total interest.

Car loan

25,000 at 7% over 5 years (60 months): about 495.03 a month and 4,701.80 total interest.

Mortgage

200,000 at 6% over 30 years: about 1,199.10 a month and 231,676 total interest.

Interest-free plan

1,200 at 0% over 12 months: exactly 100 a month and no interest.

Understanding the result

This is an estimate for a standard amortizing loan with a fixed rate and equal monthly payments. Fees, taxes, insurance, and lender-specific terms may change your actual payment.

Common mistakes

  • Entering a monthly rate as the yearly rate, or the other way round.
  • Ignoring fees, insurance and taxes, which a lender may add to the payment.
  • Choosing the longest term for the lowest payment without checking the total interest.
  • Treating the estimate as a quote — only your lender's figures are final.

When to use it

  • Comparing loan offers with different rates and terms.
  • Checking whether a payment fits your budget before you apply.
  • Seeing how much a shorter term would save in interest.
  • Planning for a car, home, or large purchase.

FAQs

Why is the total interest so high?
Interest is charged on the remaining balance each month, so long terms add up. A shorter term costs more monthly but much less overall.
Is this a quote?
No. It's an estimate — your lender's figures are what count.
What is APR?
The annual percentage rate. It often includes some fees, so it can be a better comparison than the headline rate.
Can I enter the term in months?
Yes. Switch the term to months for loans like 18 or 30 months.
Is this financial advice?
No. It's an estimate for a standard fixed-rate loan. Speak to your lender or an adviser before borrowing.

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