Debt Calculator - Monthly Payment and Loan Cost

Calculate a loan payment, term, and borrowing cost from balance, annual rate, and years. Compare debt plans before you sign.

Enter the loan amount, annual interest rate, and term in years to see the fixed monthly payment for a fully amortizing loan.

M = P × r × (1 + r)^n / ((1 + r)^n − 1), with r = annual rate / 12 and n = years × 12. If r = 0, M = P / n.

Loan Amount

Annual Interest Rate (%)

Loan Term (Years)

About the debt calculator

A debt calculator answers the first question on any installment loan: what is the monthly payment if the balance amortizes over a fixed term at a stated annual rate? Personal loans, auto loans, and many business term loans use that structure. The debt calculator applies the standard fully amortizing formula so you can compare offers, size a refinance, or see how a shorter term raises the payment while cutting interest. With a monthly rate r = APR / 12 and n = years × 12 payments, the payment is M = P × r × (1 + r)^n / ((1 + r)^n − 1). If the rate is zero, M is simply principal divided by n. A $10,000 loan at 8% for 3 years is 36 payments of $313.36. $25,000 at 6% for 5 years is $483.32. $5,000 at 0% for 2 years is $208.33. Each payment covers that month’s interest first; the rest reduces principal. Use the payment when you budget, when a lender quotes a rate and term, or when you compare a three-year versus five-year note. Total interest is roughly M × n − P, which grows quickly on long consumer loans. The calculator’s headline is the monthly payment because that is the cash-flow constraint; multiply by n yourself if you need total cost for a given quote. The formula assumes a fixed rate, monthly compounding, and no extra payments, fees, or balloon. Credit cards are not amortizing loans unless you fix a payment large enough to clear the balance on a schedule. Origination fees that are financed belong in the principal; fees paid in cash do not. Taxes, insurance, and HOA amounts on a mortgage are outside this payment. Recalculate whenever the balance, rate, or term changes, and compare two quotes with the same principal so the payment difference is only rate and term. If a lender uses daily simple interest or biweekly payments, the number will differ slightly. Treat the result as the standard amortizing baseline before you sign.

Debt payment examples

Payments use the amortizing formula with monthly rate APR ÷ 12 and n = years × 12.

Inputs	Monthly payment	Note
$10,000; 8%; 3 years	$313.36	36 monthly payments on a fully amortizing personal loan.
$25,000; 6%; 5 years	$483.32	60 payments; a longer term lowers the monthly amount.
$5,000; 0%; 2 years	$208.33	Zero interest splits the principal evenly over 24 months.

How to calculate a debt payment

Enter the loan amount, including any fees you plan to finance.
Enter the annual interest rate as a percent, not a decimal.
Enter the term in years (use 2.5 for two years and six months).
Select Calculate Debt Payment and compare the monthly amount with your budget.

Debt calculator FAQ

How is the monthly debt payment calculated?

The calculator uses the standard amortization formula M = P × r × (1 + r)^n / ((1 + r)^n − 1), where r is the monthly rate and n is the number of months. A zero rate divides principal by n.

Does the payment include taxes or insurance?

No. The result is principal and interest only. Mortgage escrow items, credit-card fees, and late charges are separate.

Can I use this for a credit card?

Only if you pick a fixed payment and term and the APR is stable. Card minimums are not amortizing payments and often include a percentage of the balance.

What if I make extra payments?

Extra principal shortens the calendar and cuts interest. This screen shows the scheduled payment for the stated term. Use a payoff calculator if you want months-to-zero with extras.

Why does a shorter term raise the payment?

The same principal is spread over fewer months, so each payment must be larger even though total interest falls. Compare both the monthly amount and M × n − P when you choose a term.