Calculate monthly payment amount for a fixed-term loan or determine the time required to pay off a loan with fixed monthly payments. Compare different payment scenarios.
The Payment Calculator helps determine either the monthly payment amount for a fixed-term loan or the time required to pay off a loan with fixed monthly payments. This flexibility allows you to explore different payment scenarios and find the best option for your financial situation.
Payment calculations form the foundation of loan planning, helping you budget effectively and understand the long-term financial commitment of any loan.
Calculate payment amount when loan term is known
Calculate loan term when payment amount is known
Total amount paid in interest over the loan life
| Calculation Type | What You Know | What You Calculate | Best For |
|---|---|---|---|
| Fixed Term | Loan amount, rate, term | Monthly payment | Planning loan affordability |
| Fixed Payment | Loan amount, rate, payment | Time to payoff | Budgeting with set payment |
| $200,000 at 6% APR | Monthly | Bi-weekly | Weekly |
|---|---|---|---|
| Payment Amount | $1,199 | $600 | $300 |
| Payments per Year | 12 | 26 | 52 |
| Payoff Time | 30 years | 24.3 years | 23.2 years |
| Total Interest | $231,676 | $180,280 | $170,400 |
| Interest Savings | Base | $51,396 | $61,276 |
Simple way to add extra principal each month
Use tax refunds or bonuses for annual extra payment
Accelerate payoff with consistent extra principal
| Loan Amount | Rate | 15-Year Payment | 30-Year Payment | Interest Difference |
|---|---|---|---|---|
| $100,000 | 5% | $791 | $537 | $65,900 |
| $200,000 | 6% | $1,688 | $1,199 | $127,900 |
| $300,000 | 7% | $2,697 | $1,996 | $185,500 |
| $500,000 | 8% | $4,782 | $3,669 | $292,000 |
Use Fixed Term When: You want to know if you can afford a specific loan term, comparing different loan options, or planning for a mortgage pre-approval.
Use Fixed Payment When: You have a set budget for payments, want to see how extra payments affect payoff time, or planning debt payoff strategies.
| Payment Type | Recommended % of Income | Maximum % of Income | Calculation Method |
|---|---|---|---|
| Housing Payment | 25-28% | 31% | Gross monthly income |
| Total Debt Payments | 30-36% | 43% | Gross monthly income |
| Auto Loan | 10-15% | 20% | Net monthly income |
| Student Loans | 8-10% | 15% | Net monthly income |
Payment Shock: Difficulty adjusting to significantly higher loan payments than current expenses.
Practice Payments: Save the difference between current expenses and projected loan payments for several months.
Gradual Increases: Start with smaller loan amounts and work up to larger payments over time.
Emergency Fund: Maintain 3-6 months of payments in savings before taking on new debt.
Start low and increase payments with income growth
Prioritize payments by interest rate for maximum savings
Mathematically optimal debt payoff strategy
Ignoring Total Interest Cost: Focusing only on monthly payment without considering total cost.
Not Considering Payment Frequency: Missing opportunities to save with bi-weekly payments.
Overextending Payment Capacity: Taking on payments that leave no room for emergencies.
Not Planning for Rate Changes: Forgetting that variable rates can increase payments.
Neglecting Extra Payment Impact: Not understanding how small extra payments create large savings.