Compare legal limits, fees and the true cost of small loans in your state before you talk to any lender. Compare legal limits, fees and the true cost of small loans in your state.
Installment Loan Payment Calculator
Installment loans are repaid in equal monthly payments over a set term. Enter the amount, the APR and the number of months to see your monthly payment, the total interest and a month-by-month schedule showing how each payment is split between interest and principal.
- Monthly payment
- $283.68
- Total interest
- $404.15
- Total to repay
- $3,404.15
Principal and interest only; origination and late fees are not included.
Amortization schedule
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $283.68 | $223.68 | $60.00 | $2,776.32 |
| 2 | $283.68 | $228.15 | $55.53 | $2,548.17 |
| 3 | $283.68 | $232.72 | $50.96 | $2,315.45 |
| 4 | $283.68 | $237.37 | $46.31 | $2,078.08 |
| 5 | $283.68 | $242.12 | $41.56 | $1,835.97 |
| 6 | $283.68 | $246.96 | $36.72 | $1,589.01 |
| 7 | $283.68 | $251.90 | $31.78 | $1,337.11 |
| 8 | $283.68 | $256.94 | $26.74 | $1,080.17 |
| 9 | $283.68 | $262.08 | $21.60 | $818.10 |
| 10 | $283.68 | $267.32 | $16.36 | $550.78 |
| 11 | $283.68 | $272.66 | $11.02 | $278.12 |
| 12 | $283.68 | $278.12 | $5.56 | $0.00 |
How installment loan payments are calculated
Most installment loans are fully amortizing: every payment is the same, and each one covers the interest for that month plus part of the principal. Early payments are mostly interest; later payments go mostly to principal, as the schedule below shows.
The monthly payment uses the standard annuity formula, where r is the monthly rate (APR ÷ 12) and n is the number of months. A longer term lowers the payment but increases the total interest, so compare both numbers before choosing a term.
Paying extra toward principal, where the loan allows it without a prepayment penalty, shortens the loan and cuts interest. Ask the lender whether origination fees are included in the APR, because a fee deducted from the loan amount raises the real cost.
r = (APR ÷ 100) ÷ 12Monthly payment M = P × r(1 + r)^n ÷ ((1 + r)^n − 1)Total interest = M × n − P
Installment Loan Payment Calculator: FAQ
What APR should I expect on an installment loan?
It depends on your credit and your state. Credit unions and banks often charge under 18% for borrowers with good credit, many states cap small installment loans at 36% APR, and some online lenders charge much more where the law allows it.
Is a shorter or longer term better?
A shorter term means higher payments but less interest overall. A longer term lowers the monthly payment but you pay more in total. Choose the shortest term whose payment fits comfortably in your budget.
Can I pay off an installment loan early?
Usually yes. Most lenders allow early payoff, and with simple-interest loans you save the interest you would have paid. Check your agreement for prepayment penalties.
Does the schedule include fees?
No. The schedule shows principal and interest only. Origination or late fees are not included; if a fee is deducted from the amount you receive, your real APR is higher than the rate entered.