Monthly payment
$410.33
Loan Calculator
Work out the monthly payment, total interest, and full cost of a fixed-rate personal, auto, or short-term loan, with the amortization math shown, not hidden.
Key Terms (Click to expand)
Principal
The amount borrowed before interest and fees.
Origination fee
A lender fee shown separately in this calculator, with no effect on the payment formula principal.
APR
Annual Percentage Rate includes more than interest, while this tool uses the nominal annual interest rate input.
Total repayment
The sum of all scheduled monthly payments over the full loan term.
Tool
Total interest
$4,619.84
Total repayment
$24,619.84
Loan detail breakdown
| Loan amount | $20,000.00 |
|---|---|
| Loan term (months) | 60 |
| Annual interest rate | 8.5% |
| Origination fee | $0.00 |
| Effective financed amount | $20,000.00 |
Methodology
Monthly payment uses the fixed-rate installment formula:
M = P * [r(1 + r)^n] / [(1 + r)^n - 1]
- P = loan amount
- r = monthly interest rate (annual rate / 12)
- n = total number of months in the loan term
- If rate is 0, monthly payment equals principal divided by term.
Using This Tool Well
When to use this tool
- Term squeeze check: compare a $20,000 loan at 8% over 60 months versus 48 months before choosing lower payment over lower interest.
- Fee visibility check: put a $450 origination fee on a $15,000 quote so the cash cost is visible even though the monthly-payment formula stays tied to principal.
- Refinance sanity check: rerun the current balance, new rate, and new term to see whether the lower payment is coming from a better rate or just a reset clock.
How to read the result
Use monthly payment for affordability, total interest for cost, and origination fee for cash-at-close comparison. When two quotes have different terms, compare total repayment and the payoff date before deciding that the lower monthly payment is actually cheaper.
Common mistakes
- Confusing rate and APR: a $10,000 loan at 10% with a $500 fee still has that $500 cost even if the nominal rate field says 10%, and APR disclosures may fold it in differently.
- Double-counting a financed fee: adding a $600 fee to principal and also entering it as an origination fee overstates upfront cost by $600 before interest effects.
- Chasing the smallest payment: a $20,000 loan at 8% is about $406 per month for 60 months and about $488 for 48 months, but the lower payment buys time, not a free discount.
Reviewed by Leonardo, Software Engineer
Last reviewed June 23, 2026
Premises and Limitations
- This estimate assumes a fixed interest rate for the full term.
- Origination fee is displayed separately and not financed into monthly payment.
- Actual lender terms and APR disclosures may differ.
FAQ
Is this for fixed-rate loans only?
Yes. This calculator is designed for fixed-rate installment loans.
Does this include APR?
No. This calculator uses nominal annual interest rate and shows origination fee separately.
Does origination fee change monthly payment here?
No. Fee is displayed as part of loan cost context, but payment formula uses principal amount directly.