Loan Payment Calculator
Planning a new personal, car or student loan? Enter the amount, rate and term to see the monthly payment, the total interest and what you will repay in full.
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What will my monthly loan payment be?
Your monthly loan payment depends on three things: the amount borrowed, the interest rate and the number of months. A $20,000 loan at 8% over 48 months costs about $488 a month, with roughly $3,436 in total interest. Stretching it to 72 months drops the payment to about $351 but raises interest to about $5,248.
How the loan payment calculator works
This loan payment calculator works out the fixed monthly payment on a new loan that is paid off in equal instalments. Each payment covers that month's interest first, and the rest reduces the balance. Early payments are mostly interest; later ones are mostly principal.
It is built for a loan you are about to take out: a personal loan, a car loan, a student or consolidation loan. If you already carry debts and want a plan to clear them, the debt payoff calculator is the better tool, because it compares payoff orders and extra payments across several balances.
- Loan amount. The amount you will borrow, after any down payment. Include fees if they are added to the loan.
- Interest rate (%). The annual rate on the offer. Use the APR if you have it, since it includes some fees.
- Term (months). The length of the loan, such as 36, 48 or 60 months.
- Read the result. You see the monthly payment, the total interest and the total repaid over the life of the loan.
The loan payment formula
Lenders use the standard amortization formula. The monthly payment equals P × r ÷ (1 − (1 + r)^−n), where P is the amount borrowed, r is the annual rate divided by 12, and n is the number of monthly payments. At a 0% rate, the payment is simply the amount divided by the number of months.
Real loans can differ slightly. Some lenders compound interest differently, charge bi-weekly payments or add fees at the start. Use the calculator to compare offers on the same basis, then confirm the exact payment in the loan agreement.
How the loan term changes your payment
A longer term lowers the monthly payment but increases the total interest, because you owe money for longer. The table shows the same $20,000 loan at 8% over different terms.
| Term | Monthly payment | Total interest | Total repaid |
|---|---|---|---|
| 36 months | $626.73 | $2,562 | $22,562 |
| 48 months | $488.26 | $3,436 | $23,436 |
| 60 months | $405.53 | $4,332 | $24,332 |
| 72 months | $350.66 | $5,248 | $25,248 |
| 84 months | $311.72 | $6,185 | $26,185 |
Pick the shortest term whose payment fits comfortably in your budget. If you choose a longer term for flexibility, check whether the lender lets you pay extra without a penalty, so you can still finish early.
If you want the lower payment but plan to finish early, park extra money in a savings goal in EMOH Pay and make a lump-sum payment when the loan allows it. You keep the flexibility of the smaller required payment and still cut the interest.
Watch your debt shrink
- Track loans, cards and your mortgage as liabilities
- See what changed each month
- Budget an extra payment into every month
How much does the interest rate matter?
The rate matters a lot over the life of a loan. Each extra percentage point on a $20,000, 48-month loan adds roughly $450 in interest. Your credit score, income, existing debt and whether the loan is secured all affect the rate you are offered, so it pays to compare lenders before you sign.
In Canada, the criminal interest rate was lowered to 35% APR in 2025, but many legal loans still carry high rates. Compare the APR, not just the advertised rate, because APR includes most fees. Our explainer on what APR means covers the difference.
Loan payment calculator for car, personal and student loans
Car loans
For a vehicle, the amount financed should include sales tax and fees minus your down payment. The car loan calculator for Canada adds provincial tax for you, and the car affordability calculator shows a price that fits your take-home pay.
Personal and consolidation loans
A consolidation loan only helps if its rate is lower than the debts it replaces and you avoid building new balances. Compare its total interest with what you would pay on your current cards using the credit card interest calculator.
Loans in other countries
The formula works in any currency. In India and some other markets, the monthly payment is called an EMI; our EMI calculator is set up for that format.
Can you afford the payment?
A payment you can make is not always a payment you can afford. Before you borrow, check your debt-to-income ratio with the new payment included, and make sure there is still room for savings and an emergency fund.
Once the loan starts, add it to your budget as a fixed bill. EMOH Pay's bill tracking reminds you of each due date, and your net worth view shows the balance fall as you pay it down, so you can see the loan working rather than just leaving your account.
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Get started free➜Loan Payment Calculator: frequently asked questions
How is a monthly loan payment calculated?
The payment is set so that equal monthly instalments cover interest and repay the full balance by the end of the term. The formula is P × r ÷ (1 − (1 + r)^−n), with r as the monthly rate and n as the number of payments.
Is it better to choose a shorter or longer loan term?
A shorter term costs less interest overall but has a higher payment. A longer term eases the monthly budget but costs more. Choose the shortest term you can comfortably afford.
Does this calculator include fees?
Only if you add them to the loan amount or use the APR as the rate. Origination and administration fees can make a loan cost more than the headline rate suggests.
Can I pay off a loan early?
Many personal and car loans allow extra payments or early payoff, but some charge a penalty. Check the agreement. Extra payments go straight to principal and reduce total interest.
How is this different from the debt payoff calculator?
This tool shows the payment on one new loan. The debt payoff calculator helps you plan how to clear debts you already have, including which to pay first and how extra payments speed things up.
Sources and further reading
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