How is the monthly payment worked out?

The monthly rate is the annual interest rate divided by 12. The payment is the loan amount × monthly rate × (1 + monthly rate)^n ÷ ((1 + monthly rate)^n − 1), where n is the number of monthly payments, rounded up to the next cent. For 28,500.00 at 3.99% over 60 months, the monthly rate is 0.3325% and the payment is 524.75.

Why is the final payment different?

The payment and each month's interest are rounded up to the next cent, so the balance left for the last month isn't exactly one payment. The final payment is whatever clears the balance: 524.57 in the example.

What if the interest rate is 0%?

The formula divides by zero at 0%, so the calculator divides the loan amount by the number of payments instead and rounds up to the next cent. For 1,000.00 over 3 months, that's 333.34, 333.34 and a final 333.32.

Does the payment include fees, insurance or taxes?

No. It covers only the loan amount and the interest from the rate you enter. Your loan agreement can include other charges, so check your figures against it.

Can I use a rate that changes during the loan?

No. The calculator uses one fixed annual rate for the whole term and assumes a payment every month with no extra payments.

A loan amount up to 1,000,000,000,000.00, entered to the cent, an annual interest rate from 0 to 100% with up to 4 decimal places, and a term of 1 to 600 whole months.

Loan Payment Calculator

Enter the loan amount, the annual interest rate and the term in months to see the monthly payment, the total interest and a month-by-month schedule of interest, principal and balance.

Loan terms

Amounts are in dollars and cents. Payments are monthly, and the interest rate is divided by 12 for each month.

Loan amount ($)

The amount you borrow (the principal).

Annual interest rate (%)

The yearly interest rate from your loan terms, from 0 to 100, with up to 4 decimal places.

Term (months)

The number of monthly payments, from 1 to 600. For 5 years, enter 60.

Monthly payment

$524.75

Final payment (month 60): $524.57

Monthly interest rate: 3.99% ÷ 12 = 0.3325%
Number of payments: 60
Total paid: $31,484.82
Total interest: $2,984.82

The payment and each month's interest are rounded up to the next cent, and the final payment is whatever clears the balance, so it can differ from the others.

Amortization schedule

Month 1$524.75
Interest $94.77 · Principal $429.98 · Balance $28,070.02
Month 2$524.75
Interest $93.34 · Principal $431.41 · Balance $27,638.61
Month 3$524.75
Interest $91.90 · Principal $432.85 · Balance $27,205.76
Month 4$524.75
Interest $90.46 · Principal $434.29 · Balance $26,771.47
Month 5$524.75
Interest $89.02 · Principal $435.73 · Balance $26,335.74
Month 6$524.75
Interest $87.57 · Principal $437.18 · Balance $25,898.56
Month 7$524.75
Interest $86.12 · Principal $438.63 · Balance $25,459.93
Month 8$524.75
Interest $84.66 · Principal $440.09 · Balance $25,019.84
Month 9$524.75
Interest $83.20 · Principal $441.55 · Balance $24,578.29
Month 10$524.75
Interest $81.73 · Principal $443.02 · Balance $24,135.27
Month 11$524.75
Interest $80.25 · Principal $444.50 · Balance $23,690.77
Month 12$524.75
Interest $78.78 · Principal $445.97 · Balance $23,244.80
Month 13$524.75
Interest $77.29 · Principal $447.46 · Balance $22,797.34
Month 14$524.75
Interest $75.81 · Principal $448.94 · Balance $22,348.40
Month 15$524.75
Interest $74.31 · Principal $450.44 · Balance $21,897.96
Month 16$524.75
Interest $72.82 · Principal $451.93 · Balance $21,446.03
Month 17$524.75
Interest $71.31 · Principal $453.44 · Balance $20,992.59
Month 18$524.75
Interest $69.81 · Principal $454.94 · Balance $20,537.65
Month 19$524.75
Interest $68.29 · Principal $456.46 · Balance $20,081.19
Month 20$524.75
Interest $66.77 · Principal $457.98 · Balance $19,623.21
Month 21$524.75
Interest $65.25 · Principal $459.50 · Balance $19,163.71
Month 22$524.75
Interest $63.72 · Principal $461.03 · Balance $18,702.68
Month 23$524.75
Interest $62.19 · Principal $462.56 · Balance $18,240.12
Month 24$524.75
Interest $60.65 · Principal $464.10 · Balance $17,776.02
Month 25$524.75
Interest $59.11 · Principal $465.64 · Balance $17,310.38
Month 26$524.75
Interest $57.56 · Principal $467.19 · Balance $16,843.19
Month 27$524.75
Interest $56.01 · Principal $468.74 · Balance $16,374.45
Month 28$524.75
Interest $54.45 · Principal $470.30 · Balance $15,904.15
Month 29$524.75
Interest $52.89 · Principal $471.86 · Balance $15,432.29
Month 30$524.75
Interest $51.32 · Principal $473.43 · Balance $14,958.86
Month 31$524.75
Interest $49.74 · Principal $475.01 · Balance $14,483.85
Month 32$524.75
Interest $48.16 · Principal $476.59 · Balance $14,007.26
Month 33$524.75
Interest $46.58 · Principal $478.17 · Balance $13,529.09
Month 34$524.75
Interest $44.99 · Principal $479.76 · Balance $13,049.33
Month 35$524.75
Interest $43.39 · Principal $481.36 · Balance $12,567.97
Month 36$524.75
Interest $41.79 · Principal $482.96 · Balance $12,085.01
Month 37$524.75
Interest $40.19 · Principal $484.56 · Balance $11,600.45
Month 38$524.75
Interest $38.58 · Principal $486.17 · Balance $11,114.28
Month 39$524.75
Interest $36.96 · Principal $487.79 · Balance $10,626.49
Month 40$524.75
Interest $35.34 · Principal $489.41 · Balance $10,137.08
Month 41$524.75
Interest $33.71 · Principal $491.04 · Balance $9,646.04
Month 42$524.75
Interest $32.08 · Principal $492.67 · Balance $9,153.37
Month 43$524.75
Interest $30.44 · Principal $494.31 · Balance $8,659.06
Month 44$524.75
Interest $28.80 · Principal $495.95 · Balance $8,163.11
Month 45$524.75
Interest $27.15 · Principal $497.60 · Balance $7,665.51
Month 46$524.75
Interest $25.49 · Principal $499.26 · Balance $7,166.25
Month 47$524.75
Interest $23.83 · Principal $500.92 · Balance $6,665.33
Month 48$524.75
Interest $22.17 · Principal $502.58 · Balance $6,162.75
Month 49$524.75
Interest $20.50 · Principal $504.25 · Balance $5,658.50
Month 50$524.75
Interest $18.82 · Principal $505.93 · Balance $5,152.57
Month 51$524.75
Interest $17.14 · Principal $507.61 · Balance $4,644.96
Month 52$524.75
Interest $15.45 · Principal $509.30 · Balance $4,135.66
Month 53$524.75
Interest $13.76 · Principal $510.99 · Balance $3,624.67
Month 54$524.75
Interest $12.06 · Principal $512.69 · Balance $3,111.98
Month 55$524.75
Interest $10.35 · Principal $514.40 · Balance $2,597.58
Month 56$524.75
Interest $8.64 · Principal $516.11 · Balance $2,081.47
Month 57$524.75
Interest $6.93 · Principal $517.82 · Balance $1,563.65
Month 58$524.75
Interest $5.20 · Principal $519.55 · Balance $1,044.10
Month 59$524.75
Interest $3.48 · Principal $521.27 · Balance $522.83
Month 60$524.57
Interest $1.74 · Principal $522.83 · Balance $0.00

How the payment is worked out

Monthly rate = annual interest rate ÷ 12.
Monthly payment = loan amount × monthly rate × (1 + monthly rate)ⁿ ÷ ((1 + monthly rate)ⁿ − 1), where n is the number of monthly payments.
Each month: interest = balance × monthly rate; principal = payment − interest; new balance = balance − principal.

This is the loan payment formula in section 6.8, “The Basics of Loans,” of OpenStax Contemporary Mathematics (opened October 29, 2026), which rounds the payment and each month's interest up to the next penny. The calculator does the same, and the final payment is whatever clears the balance. At 0%, where the formula divides by zero, the calculator divides the loan amount by the number of payments. Your results can differ from a lender's schedule, which may round or compound differently, so check them against your loan agreement.

In the example from that section, a 28,500.00 loan at 3.99% for 5 years (60 months) has a monthly rate of 0.3325% and a payment of 524.75. With the same rounding, this calculator's own schedule gives month 1 interest of 94.77 and principal of 429.98, a final payment of 524.57 and total interest of 2,984.82; these figures aren't in OpenStax.

Amounts are in dollars and cents. The calculator assumes one fixed rate for the whole term, a payment every month and no extra payments, and it adds no fees, insurance or taxes. Check your figures against your loan agreement.

For related tools, see the cash flow calculator, the ROI calculator and the depreciation calculator, or read about the debt to equity ratio.

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