Loan payment calculator
What monthly principal and interest payment follows from an entered fixed-rate loan?
A teaching example in the units shown below.
These authored example inputs illustrate the calculation. Replace them with your own documented amounts, periods and rates; they are not measured industry averages or available offers.
Amount borrowed, before repayments.
Fixed interest rate, not fee-inclusive APR. Use the actual offered rate for a decision.
Equal payments at each month end. The 1–1,200 month range is a calculation limit, not a lender term limit.
Your entered scenario
Starting exampleCalculation updated using the entered assumptions.
Inspect all 60 monthly payments
| Month | Opening balance | Payment | Principal | Interest | Closing balance |
|---|---|---|---|---|---|
| 1 | $25,000.00 | $506.91 | $340.24 | $166.67 | $24,659.76 |
| 2 | $24,659.76 | $506.91 | $342.51 | $164.40 | $24,317.25 |
| 3 | $24,317.25 | $506.91 | $344.79 | $162.11 | $23,972.45 |
| 4 | $23,972.45 | $506.91 | $347.09 | $159.82 | $23,625.36 |
| 5 | $23,625.36 | $506.91 | $349.41 | $157.50 | $23,275.95 |
| 6 | $23,275.95 | $506.91 | $351.74 | $155.17 | $22,924.21 |
| 7 | $22,924.21 | $506.91 | $354.08 | $152.83 | $22,570.13 |
| 8 | $22,570.13 | $506.91 | $356.44 | $150.47 | $22,213.69 |
| 9 | $22,213.69 | $506.91 | $358.82 | $148.09 | $21,854.87 |
| 10 | $21,854.87 | $506.91 | $361.21 | $145.70 | $21,493.66 |
| 11 | $21,493.66 | $506.91 | $363.62 | $143.29 | $21,130.04 |
| 12 | $21,130.04 | $506.91 | $366.04 | $140.87 | $20,764.00 |
| 13 | $20,764.00 | $506.91 | $368.48 | $138.43 | $20,395.51 |
| 14 | $20,395.51 | $506.91 | $370.94 | $135.97 | $20,024.57 |
| 15 | $20,024.57 | $506.91 | $373.41 | $133.50 | $19,651.16 |
| 16 | $19,651.16 | $506.91 | $375.90 | $131.01 | $19,275.26 |
| 17 | $19,275.26 | $506.91 | $378.41 | $128.50 | $18,896.85 |
| 18 | $18,896.85 | $506.91 | $380.93 | $125.98 | $18,515.92 |
| 19 | $18,515.92 | $506.91 | $383.47 | $123.44 | $18,132.45 |
| 20 | $18,132.45 | $506.91 | $386.03 | $120.88 | $17,746.42 |
| 21 | $17,746.42 | $506.91 | $388.60 | $118.31 | $17,357.82 |
| 22 | $17,357.82 | $506.91 | $391.19 | $115.72 | $16,966.63 |
| 23 | $16,966.63 | $506.91 | $393.80 | $113.11 | $16,572.83 |
| 24 | $16,572.83 | $506.91 | $396.42 | $110.49 | $16,176.41 |
| 25 | $16,176.41 | $506.91 | $399.07 | $107.84 | $15,777.34 |
| 26 | $15,777.34 | $506.91 | $401.73 | $105.18 | $15,375.61 |
| 27 | $15,375.61 | $506.91 | $404.41 | $102.50 | $14,971.21 |
| 28 | $14,971.21 | $506.91 | $407.10 | $99.81 | $14,564.11 |
| 29 | $14,564.11 | $506.91 | $409.82 | $97.09 | $14,154.29 |
| 30 | $14,154.29 | $506.91 | $412.55 | $94.36 | $13,741.74 |
| 31 | $13,741.74 | $506.91 | $415.30 | $91.61 | $13,326.44 |
| 32 | $13,326.44 | $506.91 | $418.07 | $88.84 | $12,908.38 |
| 33 | $12,908.38 | $506.91 | $420.85 | $86.06 | $12,487.52 |
| 34 | $12,487.52 | $506.91 | $423.66 | $83.25 | $12,063.86 |
| 35 | $12,063.86 | $506.91 | $426.48 | $80.43 | $11,637.38 |
| 36 | $11,637.38 | $506.91 | $429.33 | $77.58 | $11,208.05 |
| 37 | $11,208.05 | $506.91 | $432.19 | $74.72 | $10,775.86 |
| 38 | $10,775.86 | $506.91 | $435.07 | $71.84 | $10,340.79 |
| 39 | $10,340.79 | $506.91 | $437.97 | $68.94 | $9,902.82 |
| 40 | $9,902.82 | $506.91 | $440.89 | $66.02 | $9,461.93 |
| 41 | $9,461.93 | $506.91 | $443.83 | $63.08 | $9,018.10 |
| 42 | $9,018.10 | $506.91 | $446.79 | $60.12 | $8,571.31 |
| 43 | $8,571.31 | $506.91 | $449.77 | $57.14 | $8,121.54 |
| 44 | $8,121.54 | $506.91 | $452.77 | $54.14 | $7,668.78 |
| 45 | $7,668.78 | $506.91 | $455.78 | $51.13 | $7,212.99 |
| 46 | $7,212.99 | $506.91 | $458.82 | $48.09 | $6,754.17 |
| 47 | $6,754.17 | $506.91 | $461.88 | $45.03 | $6,292.29 |
| 48 | $6,292.29 | $506.91 | $464.96 | $41.95 | $5,827.33 |
| 49 | $5,827.33 | $506.91 | $468.06 | $38.85 | $5,359.26 |
| 50 | $5,359.26 | $506.91 | $471.18 | $35.73 | $4,888.08 |
| 51 | $4,888.08 | $506.91 | $474.32 | $32.59 | $4,413.76 |
| 52 | $4,413.76 | $506.91 | $477.48 | $29.43 | $3,936.28 |
| 53 | $3,936.28 | $506.91 | $480.67 | $26.24 | $3,455.61 |
| 54 | $3,455.61 | $506.91 | $483.87 | $23.04 | $2,971.73 |
| 55 | $2,971.73 | $506.91 | $487.10 | $19.81 | $2,484.64 |
| 56 | $2,484.64 | $506.91 | $490.35 | $16.56 | $1,994.29 |
| 57 | $1,994.29 | $506.91 | $493.61 | $13.30 | $1,500.68 |
| 58 | $1,500.68 | $506.91 | $496.91 | $10.00 | $1,003.77 |
| 59 | $1,003.77 | $506.91 | $500.22 | $6.69 | $503.55 |
| 60 | $503.55 | $506.91 | $503.55 | $3.36 | $0.00 |
Formula and interpretation
Monthly rate = nominal annual rate ÷ 12
Payment = principal × monthly rate ÷ [1 − (1 + monthly rate)^(−months)]
At a zero interest rate, payment = principal ÷ months.
To reproduce the worked example, choose Hypothetical arithmetic example under Starting example. Business presets have their own inputs; compare the selected values before applying the result.
The schedule repays the entered principal over the entered term. Each month separates interest from the amount reducing principal.
The schedule carries calculation precision and rounds only displayed amounts. Your lender's cent-by-cent ledger may differ.
Worked example: the $25,000 principal, 8% nominal annual rate and 60 month-end payments produce about $506.91 per month and $5,414.59 total interest. At 0%, the same principal and term require about $416.67 monthly before any excluded charges.
For a mobile Auto Detailing launch, enter only the confirmed borrowed amount and offered terms after separating equipment spend from operating cash. Add the resulting debt payments to the cash plan; operating EBITDA does not pay principal automatically.
Definitions and sources
These references support definitions and calculation boundaries, not the selected amounts. Worked examples below use the hypothetical arithmetic inputs. A selected business preset has its own roster, cost allocation and evidence; its results can differ without a formula error.
- PMT payment conventions — Microsoft. Supports fixed rates, equal period-end payments, consistent monthly units and excluded fees. Accessed October 4, 2026.
- Interest rate versus APR — Consumer Financial Protection Bureau. Explains that interest and fee-inclusive APR measure different borrowing costs. Accessed October 4, 2026.
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