CalcKitLoan Payment Calculator
Your loan
Enter the term in years or months — the calculator converts it to monthly payments either way. The APR is the yearly rate, including the lender’s interest and fees.
Example: $25,000 borrowed at 7% APR for 5 years → $495.03 a month, $4,701.80 of interest, $29,701.80 paid in total.
Behind the numbers
How a loan payment is calculated
Every loan payment is split into interest and principal. The interest part is the remaining balance times the monthly rate (APR divided by 12); the rest of the payment pays down the principal. Because the balance falls each month, the interest share shrinks and the principal share grows, but the payment stays the same until the loan is paid off.
P is the loan amount ($25,000), r is the monthly rate (7% ÷ 12 = 0.5833%) and n is the number of monthly payments (60). Total interest is the monthly payment times n, minus the loan amount.
A few comparisons
Payoff comparison: 3, 5 and 7 years
Same loan as the example ($25,000 at 7% APR). The table updates when you change the amount or the APR.
| Term | Monthly payment | Total interest | Total paid |
|---|---|---|---|
| 3 years (36 months) | $771.93 | $2,789.39 | $27,789.39 |
| 5 years (60 months) | $495.03 | $4,701.80 | $29,701.80 |
| 7 years (84 months) | $377.32 | $6,694.63 | $31,694.63 |
The 7-year term costs $395 less a month than the 3-year term, but $3,905 more in interest. The 5-year term sits in the middle: $277 less a month than 3 years, and $1,912 more interest.
Borrow less, pay less.
Pick the shortest term whose payment you can afford. The payment jumps, but the interest saved is often thousands of dollars.
Shop the APR before you borrow. On $25,000 over 5 years, 5% instead of 9% saves about $47 a month and $2,831 in total interest.
Check the payoff date against your plans. A loan that runs past the life of what you bought — a car, a phone, a holiday — means paying for something you no longer use.
Ask whether the lender charges an origination fee or a prepayment penalty, and whether extra payments go to principal. Both change the true cost of the loan.
Good to know
Your loan questions, answered.
What is the loan payment formula?
The standard amortization formula: monthly payment = loan amount × monthly rate ÷ (1 − (1 + monthly rate)^−months), where the monthly rate is the APR divided by 12 and months is the term in months. For example, $25,000 at 7% APR over 60 months is $25,000 × 0.5833% ÷ (1 − 1.005833^−60) = $495.03 a month.
How does the APR change my payment?
A higher APR raises the payment and the total interest. On a $25,000 loan over 5 years, 5% APR costs $471.78 a month and $3,306.85 in interest, while 9% APR costs $518.96 a month and $6,137.53 in interest — $2,830 more for the same loan.
Is a shorter loan term always better?
It costs less interest overall, but the monthly payment is higher. On $25,000 at 7%, a 3-year term costs $771.93 a month with $2,789.39 of interest, a 5-year term costs $495.03 with $4,701.80, and a 7-year term costs $377.32 with $6,694.63. Pick the shortest term whose payment you can afford every month.
Do extra payments help?
Yes. Any extra amount you pay goes straight to the principal, which cuts the interest on every payment after it and shortens the loan. Even $25 extra a month on the example loan saves hundreds of dollars in interest — ask your lender whether extra payments are applied to principal and whether any prepayment fee applies.