Payment Calculator

How the calculation works

With a fixed term, the calculator finds the level monthly payment that repays the loan exactly. With a fixed payment, it finds how many months it takes to pay the loan off, and the total interest you will pay.

Formula used

Payment = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1); Months = −ln(1 − P × r ÷ Payment) ÷ ln(1 + r)

Example

A $20,000 loan at 7% paid at $500 a month takes 46 months (3 years 10 months) and costs $2,841.23 in interest.