Calculate your required loan payment, maximum loan amount, or interest rate for any amortized loan.
To calculate monthly loan payments, use the formula: M = P × [r(1+r)^n] / [(1+r)^n-1], where M is monthly payment, P is principal amount, r is monthly interest rate, and n is number of payments. For example, a $20,000 loan at 6% annual interest over 5 years results in a $386.66 monthly payment. This includes both principal and interest portions.
This calculator uses the loan payment formula PMT = P[r(1+r)^n]/[(1+r)^n - 1] to calculate monthly payments for any type of loan including mortgages, auto loans, and personal loans.
This Payment Calculator calculates monthly loan payments using the standard amortization formula. It works for mortgages, auto loans, personal loans, and other installment loans. The calculator follows Canadian financial standards and provides detailed breakdowns of principal, interest, and total cost over the loan term.
Standards: Standard Loan Payment Formula, FCAC Consumer Loan Guidelines, Canadian Lending Standards, Amortization Calculation Methods
Calculate required periodic payments for any loan type with precision
Works for mortgages, auto loans, personal loans, and any amortized debt.
Test different rates, terms, and payment amounts to find the best option.
See exactly how much interest you'll pay over the life of the loan.
Get immediate calculations with full amortization schedule
No registration required, completely free payment calculator
Periodic payments are calculated using the standard amortization formula, which spreads principal and interest evenly across the full term.
Actual lender schedules may differ slightly due to rounding conventions and compounding frequency.
Standard Amortization Payment Formula
PMT = P[r(1+r)^n] / [(1+r)^n - 1]
Input the loan principal amount, annual interest rate, and loan term. These three values are all that's needed to calculate your exact monthly payment using the standard amortization formula.
Choose between monthly, biweekly, or weekly payment schedules. More frequent payments reduce total interest cost because you pay down the principal faster throughout the year.
Try different interest rates, loan terms, and payment frequencies to find the best combination for your budget. Even a 0.5% rate reduction on a large loan saves thousands over its lifetime.
Review how much of each payment goes toward principal versus interest. Early payments are mostly interest, but as the balance decreases, more of each payment reduces your principal.
Know your maximum affordable payment before visiting dealers or lenders. Calculate what payment fits your budget, then solve for maximum loan amount. This prevents overspending and gives you negotiating power.
Bi-weekly payments result in one extra monthly payment per year (26 bi-weekly = 13 months). This can save thousands in interest and shorten your loan term by years without feeling like a burden.
If your payment is $437, pay $450 or $500 instead. The extra amount goes directly to principal, saving interest over time. This small change can cut years off your loan term.
Dealers focus on monthly payment to hide true cost. A $400/month payment over 7 years costs $33,600. The same amount over 4 years at higher payment saves thousands in interest. Always calculate total cost.
When lenders quote rates or terms, use this calculator immediately to see the real impact. A 1% rate difference on a $300,000 mortgage saves over $50,000 in interest. Know the numbers before agreeing.
If choosing variable rate loans, calculate payments at higher rates to ensure affordability if rates rise. Test your payment at 2-3% higher than current rate to avoid payment shock if rates increase.
The fixed amount you pay each period (monthly, bi-weekly, etc.). This includes both principal and interest portions that change over time through amortization.
The original amount borrowed, or the remaining balance owed. Each payment reduces the principal, with more going to principal as the loan progresses.
The annual percentage charged on the loan balance. This is converted to a periodic rate (monthly, bi-weekly) for payment calculations.
The total time period to repay the loan, typically expressed in years. Common terms are 15-30 years for mortgages, 3-7 years for auto loans.
The total cost of borrowing expressed as a yearly rate, including interest and fees. APR is always higher than the interest rate when fees are included.
This calculator is based on the following authoritative sources and research:
Important Note: Payment calculations are based on standard loan formulas. Actual payments may vary based on lender terms, fees, insurance, and other factors. Always review your loan agreement carefully and consult with a financial advisor for personalized guidance.
Everything you need to know about payment calculations
Enter your information in the form on the left to see your payment details and interest breakdown.
