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Calculate the fixed payment on a loan

Find the fixed payment from the loan amount, the interest rate per period and the number of periods. The calculation assumes payment at the end of each period.

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Applies to the amounts in this calculator.

The amount you borrow.

USD

The interest for one period. If you pay monthly, it is the monthly rate.

%

The total number of payments, for example 120 for monthly payments over 10 years.

The payment is made at the end of each period. A fixed rate per period, without fees and arrangement costs. The calculator is not a loan offer.

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Worked example
  • Loan amount: 120,000.00 USD
  • Interest per period: 0 %
  • Number of periods: 60

Result

Payment per period

2,000.00 USD

Total paid

120,000.00 USD

Total interest

0.00 USD

Working

  1. Y = L / n
    120,000.00 USD / 60 = 2,000.00 USD
  2. total = Y × n
    2,000.00 USD × 60 = 120,000.00 USD
  3. interest = total − L
    120,000.00 USD − 120,000.00 USD = 0.00 USD

What is a fixed loan payment?

An amortizing loan payment is the same size in every period at a fixed rate. The payment consists of interest and repayment. The split between the two changes as the debt is paid down, even though the total payment stays the same.

The calculator uses the loan amount, the interest rate per period and the number of payments. The periods must match the rate. If you calculate with monthly payments, the rate you enter must also be monthly. An annual rate therefore cannot be entered directly as the rate for a month.

The formula and the assumptions of the calculation

The formula is Y = L × r / (1 − (1 + r)⁻ⁿ). L is the loan amount, n is the number of periods, and r is the interest rate per period as a decimal in the formula itself. In the input field, the rate is entered in percent.

The payment is made at the end of each period. The calculation does not include fees or arrangement costs and is not a loan offer. It can be used to see how the fixed payment depends on your inputs. If the rate is zero, the payment is calculated by dividing the loan amount by the number of periods.

Example with an interest-free loan

The page's example uses a loan amount of 120,000, an interest rate of 0% and 60 periods. As the rate is zero, the calculation is 120,000 / 60 = 2,000 per period. The check is 2,000 × 60 = 120,000. The payments therefore repay the whole loan amount in this example without interest.