Payment Calculator
Find your monthly payment for any loan — or enter a fixed monthly payment to see exactly how long it takes to pay off your balance.
Monthly Payment
$386.66
Summary
A 5 years loan of $20,000.00 at 6% annual interest requires a monthly payment of $386.66. You will pay $3,199.36 in total interest, bringing the total repaid to $23,199.36.
Loan Amount
$20,000.00
Total Interest
$3,199.36
Total of Payments
$23,199.36
Loan summary
Principal
$20,000.00
Rate
6%
Term
5 yrs
Payoff Date
Jul 2031
Total repaid — principal vs interest
- Principal: $20,000.00
- Total Interest: $3,199.36
What is a Payment Calculator?
A payment calculator solves two closely related problems. In monthly payment mode it tells you how much you must pay each month to retire a loan within a fixed number of months. In time to pay off mode it works in reverse: given a loan balance and a payment amount you can afford, it tells you exactly how many months remain until the balance reaches zero.
Both modes use the same underlying amortization math. The difference is which variable you are solving for. Switching between modes lets you quickly explore trade-offs — for example, "If I can only afford $400/month, how long will this take?" versus "If I want to be debt-free in 3 years, how much do I need to pay each month?"
Remaining balance and cumulative interest over time
Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $386.66 | $286.66 | $100.00 | $19,713.34 |
| 2 | $386.66 | $288.09 | $98.57 | $19,425.25 |
| 3 | $386.66 | $289.53 | $97.13 | $19,135.72 |
| 4 | $386.66 | $290.98 | $95.68 | $18,844.75 |
| 5 | $386.66 | $292.43 | $94.22 | $18,552.32 |
| 6 | $386.66 | $293.89 | $92.76 | $18,258.42 |
| 7 | $386.66 | $295.36 | $91.29 | $17,963.06 |
| 8 | $386.66 | $296.84 | $89.82 | $17,666.22 |
| 9 | $386.66 | $298.32 | $88.33 | $17,367.89 |
| 10 | $386.66 | $299.82 | $86.84 | $17,068.07 |
| 11 | $386.66 | $301.32 | $85.34 | $16,766.76 |
| 12 | $386.66 | $302.82 | $83.83 | $16,463.94 |
| 13 | $386.66 | $304.34 | $82.32 | $16,159.60 |
| 14 | $386.66 | $305.86 | $80.80 | $15,853.74 |
| 15 | $386.66 | $307.39 | $79.27 | $15,546.35 |
| 16 | $386.66 | $308.92 | $77.73 | $15,237.43 |
| 17 | $386.66 | $310.47 | $76.19 | $14,926.96 |
| 18 | $386.66 | $312.02 | $74.63 | $14,614.94 |
| 19 | $386.66 | $313.58 | $73.07 | $14,301.36 |
| 20 | $386.66 | $315.15 | $71.51 | $13,986.21 |
| 21 | $386.66 | $316.72 | $69.93 | $13,669.49 |
| 22 | $386.66 | $318.31 | $68.35 | $13,351.18 |
| 23 | $386.66 | $319.90 | $66.76 | $13,031.28 |
| 24 | $386.66 | $321.50 | $65.16 | $12,709.78 |
| 25 | $386.66 | $323.11 | $63.55 | $12,386.67 |
| 26 | $386.66 | $324.72 | $61.93 | $12,061.95 |
| 27 | $386.66 | $326.35 | $60.31 | $11,735.60 |
| 28 | $386.66 | $327.98 | $58.68 | $11,407.62 |
| 29 | $386.66 | $329.62 | $57.04 | $11,078.00 |
| 30 | $386.66 | $331.27 | $55.39 | $10,746.74 |
| 31 | $386.66 | $332.92 | $53.73 | $10,413.82 |
| 32 | $386.66 | $334.59 | $52.07 | $10,079.23 |
| 33 | $386.66 | $336.26 | $50.40 | $9,742.97 |
| 34 | $386.66 | $337.94 | $48.71 | $9,405.03 |
| 35 | $386.66 | $339.63 | $47.03 | $9,065.40 |
| 36 | $386.66 | $341.33 | $45.33 | $8,724.07 |
| 37 | $386.66 | $343.04 | $43.62 | $8,381.03 |
| 38 | $386.66 | $344.75 | $41.91 | $8,036.28 |
| 39 | $386.66 | $346.47 | $40.18 | $7,689.81 |
| 40 | $386.66 | $348.21 | $38.45 | $7,341.60 |
| 41 | $386.66 | $349.95 | $36.71 | $6,991.65 |
| 42 | $386.66 | $351.70 | $34.96 | $6,639.95 |
| 43 | $386.66 | $353.46 | $33.20 | $6,286.50 |
| 44 | $386.66 | $355.22 | $31.43 | $5,931.27 |
| 45 | $386.66 | $357.00 | $29.66 | $5,574.27 |
| 46 | $386.66 | $358.78 | $27.87 | $5,215.49 |
| 47 | $386.66 | $360.58 | $26.08 | $4,854.91 |
| 48 | $386.66 | $362.38 | $24.27 | $4,492.53 |
| 49 | $386.66 | $364.19 | $22.46 | $4,128.34 |
| 50 | $386.66 | $366.01 | $20.64 | $3,762.32 |
| 51 | $386.66 | $367.84 | $18.81 | $3,394.48 |
| 52 | $386.66 | $369.68 | $16.97 | $3,024.79 |
| 53 | $386.66 | $371.53 | $15.12 | $2,653.26 |
| 54 | $386.66 | $373.39 | $13.27 | $2,279.87 |
| 55 | $386.66 | $375.26 | $11.40 | $1,904.62 |
| 56 | $386.66 | $377.13 | $9.52 | $1,527.48 |
| 57 | $386.66 | $379.02 | $7.64 | $1,148.46 |
| 58 | $386.66 | $380.91 | $5.74 | $767.55 |
| 59 | $386.66 | $382.82 | $3.84 | $384.73 |
| 60 | $386.66 | $384.73 | $1.92 | $0.00 |
| Year | End Date | Principal Paid | Interest Paid | Balance |
|---|---|---|---|---|
| 1 | Jul 2027 | $3,536.06 | $1,103.81 | $16,463.94 |
| 2 | Jul 2028 | $3,754.16 | $885.71 | $12,709.78 |
| 3 | Jul 2029 | $3,985.71 | $654.16 | $8,724.07 |
| 4 | Jul 2030 | $4,231.54 | $408.33 | $4,492.53 |
| 5 | Jul 2031 | $4,492.53 | $147.34 | $0.00 |
How Payment Calculations Work
Both modes rely on the standard loan amortization formula. The relationship between principal (P), monthly rate (r), number of payments (n), and monthly payment (M) is:
When solving for monthly payment, you supply P, r, and n — and the formula solves for M directly. When solving for time to pay off, you supply P, r, and M, and the formula is rearranged to solve for n:
The result is rounded up to a whole number of months, with the final payment adjusted down to clear the remaining balance exactly — which is why the last row in the amortization schedule may show a slightly smaller payment than the rest.
The Minimum Viable Payment
For the "time to pay off" mode to produce a valid result, your monthly payment must exceed the interest that accrues in the first month. That minimum is: P × (annual rate ÷ 12). If your payment equals or falls below this amount, the balance never decreases — the loan will never be paid off at that payment level, no matter how many months pass. This is why the calculator shows a warning instead of a result in that scenario.
In practice this edge case arises most often with very high-interest debt (payday loans, some credit cards) and minimum payment amounts. Making even a small increase above the minimum can shorten the payoff period dramatically.
Using Both Modes Together
The two modes are most powerful when used together. Start in monthly payment mode to find the required payment for a given term. Then switch to time to pay off mode, enter a lower payment you can comfortably afford, and see how much longer repayment takes. The difference in total interest between the two scenarios is the real cost of choosing the lower payment — and it is often surprisingly large.
For example: a $15,000 loan at 8% requires $304.15/month for 5 years — total interest $3,249. If you can only manage $250/month, the loan takes 70 months (nearly 6 years) and total interest rises to $4,500. Saving $54/month costs an extra $1,251 in interest.
How Interest Rate Affects Both Modes
In payment mode, higher rates mean higher required monthly payments for the same term. In term mode, higher rates mean more months needed to pay off the same balance with the same monthly payment — because more of each payment goes toward interest and less toward reducing principal. At very high rates (15%+), even a payment that feels generous barely dents the balance in early months.
The amortization schedule above makes this visible row by row: in the early months on a high-rate loan, the "Interest" column is large and the "Principal" column is small. The crossover point — where you are paying more principal than interest in a given month — moves later as the rate rises.
Example — Your Current Inputs
A 5 years loan of $20,000.00 at 6% annual interest requires a monthly payment of $386.66. You will pay $3,199.36 in total interest, bringing the total repaid to $23,199.36.
Interest as a share of total repaid: 13.8%.
Additional Example — Credit Card Payoff
Suppose you have a $6,000 credit card balance at 22% annual interest and you are making the minimum payment of $120/month. Plugging those numbers into the "time to pay off" mode reveals you will need 82 months — nearly 7 years — to clear the balance, and you will pay $3,811 in interest along the way. That brings the true cost of $6,000 in purchases to $9,811.
If instead you commit to $250/month, the payoff time drops to 32 months and total interest falls to $1,876 — a saving of $1,935 in interest just by paying an extra $130/month. The "monthly payment" mode can confirm what minimum payment gets you debt-free within 2 years: $309.51/month, with total interest of only $1,428.
About These Parameters
- Loan Amount
- The outstanding balance you are trying to pay off — the principal. For a new loan this is the amount you are borrowing. For an existing debt (credit card, auto loan, personal loan) it is the current balance shown on your statement. The calculation starts from this balance on the first payment date.
- Annual Interest Rate
- The yearly interest rate on the debt. The calculator divides this by 12 to get the monthly rate. For credit cards, use the Purchase APR shown on your statement. Note that credit card interest is typically calculated on a daily basis (daily periodic rate = APR ÷ 365), so results may differ slightly from your statement if you are using this for a credit card balance.
- Loan Term (Payment mode)
- The number of months over which you want to repay the loan. In payment mode, you provide this and the calculator tells you the required monthly payment. Changing the term is the single fastest way to explore the monthly-payment vs. total-interest trade-off.
- Monthly Payment (Term mode)
- The fixed amount you plan to pay each month in "time to pay off" mode. This must be larger than the monthly interest charge on your current balance — otherwise the balance will grow rather than shrink. A practical lower bound is balance × (annual rate ÷ 12) + $1; any amount above this will eventually retire the debt.
Frequently Asked Questions
Why is the last payment in the schedule smaller than the others?
The amortization formula produces a payment that reduces the balance to exactly zero. But because interest is calculated on the balance each month and each prior payment slightly reduces that balance, a tiny rounding difference accumulates over the life of the loan. The final payment is adjusted down to clear the remaining balance — which is usually a few cents to a few dollars less than the standard payment.
Does it matter if I pay at the beginning or end of the month?
This calculator uses end-of-period (ordinary annuity) logic — the standard assumption for most consumer loans, where interest accrues first and the payment is applied at the end of the month. If your loan uses beginning-of-period payments (annuity due), the required payment is very slightly lower. The difference is usually less than 0.5% and most lenders use end-of-period conventions, so this calculator is accurate for the vast majority of loans.
What happens if I pay more than the required monthly payment?
Any amount above the standard monthly payment reduces the principal faster than scheduled. This shortens the loan term and reduces total interest paid. The effect is non-linear: extra payments made early in the loan save significantly more than the same extra amount paid later, because early principal reductions eliminate years of future interest compounding. You can model this by entering a higher amount in the "monthly payment" field in "time to pay off" mode and observing how many months are saved.
Can I use this for a credit card balance?
Yes, with one caveat. This calculator assumes a fixed balance and a fixed interest rate, with no new charges added each month. If you continue using the credit card while paying it down, the actual payoff date will be longer because new charges keep adding to the balance. For the most useful result, enter your current statement balance and commit to making no new purchases on the card during the payoff period.
How do I find the payment that pays off the loan in exactly N months?
Switch to "monthly payment" mode, set the loan amount and interest rate, and enter N months as the term. The calculated monthly payment is precisely what you need to be debt-free in N months. You can then cross-check in "time to pay off" mode by entering that payment amount to confirm it produces exactly N months (small rounding in the final payment may show N or N−1 months).