PMT Calculator – Monthly Loan Payment & Amortization

PMT stands for periodic payment—the fixed amount paid each month to repay a loan. It includes both principal (original amount borrowed) and interest (cost of borrowing). The PMT formula calculates this based on loan amount, interest rate, and term.

Use the formula: PMT = P × [r(1 + r)^n] / [(1 + r)^n - 1], where P = principal, r = monthly interest rate (annual rate ÷ 12), and n = total payments (years × 12). Our calculator automates this instantly.

Yes, this calculator is perfect for mortgages. Enter your loan amount (after down payment), annual interest rate, and loan term in years. You'll get your monthly mortgage payment. Note: This shows principal + interest only, not taxes or insurance.

PMT (payment) is a general function for any fixed periodic payment. EMI (Equated Monthly Installment) is the term commonly used in India and some countries for loan payments. They use the same formula but EMI specifically refers to monthly installments on loans like mortgages or auto loans.

Total cost = Monthly Payment × Number of Months. Subtract principal to get total interest paid. Example: $1,800/month × 360 months = $648,000 total; if principal was $300K, total interest = $348K. Longer terms and higher rates mean more interest.

Larger down payment = smaller loan principal = lower monthly payment. A 20% down payment vs 5% down on a $400K home saves ~$300/month. Down payment also affects mortgage rates and PMI costs, making it even more important.

15-year: Highest payment but saves significant interest. 30-year: Lowest payment but costs 60% more in total interest. Choose based on cash flow ability. If you can afford 15-year payments, the interest savings justify it. Otherwise, 30-year maintains affordability.

On a $300K 30-year mortgage: 5% = $1,610/month vs 6% = $1,799/month—a difference of $189/month or $68,040 over 30 years. Rate shopping can save tens of thousands. Even 0.5% difference is significant on large loans.

The PMT includes principal (reducing loan balance) and interest (cost of borrowing). Early payments are mostly interest; later payments mostly principal. For mortgages, don't forget property taxes, insurance, and PMI—these are additional to PMT and can be 30-40% more.

Financial advisors recommend: Housing costs should be <28% of gross income, all debt payments <36% of gross income. If PMT = $2,000, you need gross income >$86,000 for housing alone. Use this as a rough guideline, but verify with your budget.

Extra payments reduce principal faster, saving significant interest and shortening the loan term. Example: $300K mortgage, extra $200/month saves ~$80K interest and reduces term by 5-6 years. Even small extra payments compound over time.

Total Interest = (Monthly Payment × Number of Months) - Principal. On a $300K 30-year loan at 6% APR: $1,799 × 360 - $300,000 = $347,755 in interest. This is why comparing rates matters—1% difference = $60K+ in interest.

Fixed-rate: Predictable payment, stable long-term. ARM: Lower initial rate but increases after intro period (typically 3-7 years). ARM risky if rates spike—budget for highest possible rate. Fixed-rate preferred for 15+ year mortgages; ARM only if planning to refinance soon.

Calculate PMT for each offer using the same principal and term to compare apples-to-apples. Compare total interest paid, not just monthly payment. Also factor in closing costs, origination fees, and prepayment penalties. A 0.5% lower rate might seem small but saves tens of thousands.

Best for: Quick loan comparisons, affordability checks, mortgage pre-qualification, auto loan evaluation, personal loan planning. Limitations: Doesn't include taxes/insurance/PMI, assumes fixed rates, doesn't show amortization details. Use amortization calculator for detailed payoff schedules.