Browse all calculators →
Solve for payment, amount, rate, or term
Monthly, bi-weekly & weekly frequencies
Extra payment savings modelled
Full amortisation schedule
Estimate only
HomeCalculatorsDebt & LoansMonthly Payment Calculator

Monthly Payment Calculator
Payment, Amount, Rate & Term

Calculate your loan payment, maximum loan amount, required interest rate, or loan term. Supports monthly, bi-weekly, and weekly payment frequencies. Includes extra payment savings and a full amortisation schedule.

Country
Currency
📅
Loan Details
Solve For
Total amount borrowed.
%
Annual nominal interest rate.
mo
Number of payment periods.
freq
How often payments are made. Term adjusts to match.
Optional: Extra Payment & Loan Type
Additional principal paid each period. Shows time and interest saved.
type
For context labels only. Does not affect the calculation.
💰
Extra payment saves —
Payment
per period
Total Repaid
all payments
Total Interest
interest cost
Interest / Loan
interest as % of principal
Loan Amount
principal
Annual Rate
nominal
Term
periods
Payment Frequency
selected
Payment
per period
Period Interest (1st)
first payment
Period Principal (1st)
first payment
Total Interest
over term
Total Repaid
all payments
Interest % of Loan
interest ratio
Full Breakdown
Loan Balance Over Time
Standard balance
Payment at Different Rates
Rate (%)PaymentTotal InterestTotal Repaid
Payment at Different Terms
TermPaymentTotal InterestTotal Repaid
Amortisation: First 12 Periods
PeriodPaymentPrincipalInterestBalance
Important: This calculator estimates loan payments using a standard amortisation formula. It does not account for fees, insurance, variable rates, balloon payments, or lender-specific terms. Results are estimates only.
✦ Cal, AI Explanation
Cal is reviewing your loan...
💬 Ask Cal about your loan
Cal
Your loan payment estimate is ready. Ask me about how the term affects total interest, what extra payments save, or how bi-weekly payments differ from monthly.

How the monthly payment formula works

A standard fixed-rate loan uses the annuity formula to calculate the periodic payment. The formula is: payment = principal × (r × (1+r)^n) / ((1+r)^n − 1), where r is the periodic interest rate and n is the number of periods. The periodic rate is the annual rate divided by the number of periods per year.

Solve ForInputs RequiredMethod
PaymentAmount, rate, termDirect annuity formula
Loan amountPayment, rate, termPV = PMT × (1−(1+r)^−n)/r
Interest rateAmount, payment, termNewton-Raphson iteration
TermAmount, payment, rateLogarithmic formula

How payment frequency affects the loan

Bi-weekly payments (every two weeks) produce 26 payments per year instead of 24. This is equivalent to making 13 monthly payments per year instead of 12, which reduces the principal faster and shortens the loan. Weekly payments accelerate repayment further. The interest rate is divided by the number of periods per year (12 for monthly, 26 for bi-weekly, 52 for weekly) to get the periodic rate.

How extra payments work

An extra payment goes entirely to reducing the principal balance because the scheduled payment has already covered that period's interest. A smaller principal means less interest accrues in every subsequent period, which reduces both the total interest paid and the number of periods required to pay off the loan. Even a small extra payment consistently applied can save a meaningful amount over a long loan term.

Frequently Asked Questions

What is the difference between monthly and bi-weekly payments?+
Monthly payments are made 12 times per year. Bi-weekly payments are made every two weeks, which results in 26 payments per year instead of 24. Because two extra half-payments are made annually, the principal reduces faster and the loan is paid off sooner, saving interest. The bi-weekly payment amount is approximately half the monthly payment.
Do extra payments reduce the term or the payment?+
For a standard fixed-rate loan, extra payments reduce the principal balance, which shortens the remaining term rather than reducing the scheduled payment amount. Fewer periods are needed to clear the balance because the outstanding principal is lower at each step. Some lenders allow you to choose between reducing the term and reducing the payment, but this calculator models the more common term reduction.
Why does the first payment include so much interest?+
Interest is calculated on the outstanding balance at each period. In the first period the full principal is outstanding, so the interest charge is at its highest. Each subsequent payment reduces the principal slightly, so less interest accrues the following period. This means early payments go mostly to interest and later payments go mostly to principal. This is called front-loaded amortisation.
How is the loan amount calculated from a known payment?+
If you know the payment, rate, and term, the maximum loan amount (present value) is: PV = PMT × (1 − (1+r)^−n) / r, where r is the periodic rate and n is the number of periods. This is the standard present value of an annuity formula and is used in the Loan Amount solve mode.
How is the interest rate calculated from a known payment?+
When the payment, loan amount, and term are all known, the interest rate must be found iteratively because there is no closed-form algebraic solution. This calculator uses the Newton-Raphson method, which starts from an initial guess and refines it until the payment produced by the guessed rate matches the known payment to within a very small tolerance.