Loan calculator
Enter the amount, the yearly interest rate and the term to see the monthly payment, the total interest and how the balance goes down year by year.
An estimate for a fixed-rate loan with monthly payments. Fees, taxes and insurance are not included.
How it works
The fixed monthly payment M for an amount P, a monthly rate r (yearly rate ÷ 12 ÷ 100) and n monthly payments is:
M = P × r ÷ (1 − (1 + r)^−n)Each month the interest is the balance × r; the rest of the payment reduces the balance.
Worked example
$250,000 at 6.5% for 30 years:
- r = 6.5 ÷ 12 ÷ 100 = 0.0054167
- n = 30 × 12 = 360
- M = 250000 × 0.0054167 ÷ (1 − 1.0054167^−360) ≈ $1,580.17
Frequently asked questions
How is the monthly payment calculated?
With the standard annuity formula: the payment stays the same every month, and over time a larger part of it goes to the principal and a smaller part to interest.
Does this work for a mortgage?
Yes. Enter the amount you borrow (price minus down payment), the yearly rate and the term in years. Taxes, insurance and fees are not included.
What happens with a 0% interest rate?
The payment is simply the amount divided by the number of months, and the total interest is zero.
How much do extra payments save?
Extra money paid each month goes straight to the principal, so the loan ends earlier and you pay interest on a smaller balance. The table shows the new payoff time and the interest saved.