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How to calculate the monthly payment of a loan with the calculator?
To get the monthly payment for any type of loan, simply enter the amount you want to borrow, the term in number of months to repay the loan and the interest to be paid. The calculator can be used for all types of loans, whether it is for the purchase of a car, to calculate the monthly payment for a credit card or a mortgage.
Once you see on the screen the result of the monthly payment, you can modify the initial amount or the term in months to adjust to the monthly payment you can afford, so before you ask for the loan at the bank you already know what you are going to pay each month.
We recommend that you make different simulations to find the loan that best suits your specific needs. Keep in mind that:
- Choosing a shorter term of months will increase the monthly payment required on the loan, but also reduce the total amount of interest to be paid.
- A higher payment amount, by increasing the years or months of payment, decreases the monthly payment but increases the total amount due by increasing the interest cost.
It is advisable to reduce the term to fit the monthly payment you can afford. The most common terms of the main loans are as follows:
- Mortgages: 30 years (360 months). Whenever possible, it is advisable to contract a 20 or 25 year term.
- Auto loan: the most common term in the U.S. is 6 years (72 months), 5 years is recommended.
- Personal loan for various expenses: the most common term is 4 years (48 months), followed by 60 months (5 years).
- Student loans: 10 years (120 months) is the most common term.
Español: Calculadora de préstamos