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Loan Calculator

Calculate monthly payments and total interest on loans

Loan Calculator

Loan Amount ($)

Annual Interest Rate (%)

Loan Term (months)

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About This Calculator

A loan calculator computes your monthly payment, total interest paid, and full repayment cost for fixed-rate loans such as mortgages, auto loans, personal loans, and student loans. The standard amortization formula is M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan principal, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. For example, a $300,000 mortgage at 6.5% over 30 years results in a monthly payment of about $1,896 and total interest of approximately $382,633 over the life of the loan. The calculator generates a full amortization schedule showing how each payment splits between principal and interest, which is eye-opening — in early years, the majority of each payment goes to interest. This tool helps you compare loan offers, understand the impact of making extra payments, evaluate refinancing options, and determine how much house or car you can afford. Adjusting the term length, interest rate, or down payment lets you see exactly how each variable affects your monthly budget and total cost.

How to Use

1
Enter loan details
Input the loan amount, annual interest rate, and loan term.
2
Click Calculate
Press Calculate to generate your repayment schedule.
3
Review the schedule
View your monthly payment, total interest paid, and full amortization table.

Frequently Asked Questions

Q. How is a monthly loan payment calculated?

The formula is M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate, and n is the total number of payments. For a $200,000 loan at 6% for 30 years: r = 0.005, n = 360, giving a monthly payment of approximately $1,199. Most of the early payments go toward interest.

Q. Should I choose a 15-year or 30-year mortgage?

A 15-year mortgage has higher monthly payments but dramatically lower total interest — often saving you 50–60% in interest costs. A 30-year mortgage offers lower payments and more flexibility. For a $300,000 loan at 6%, the 30-year option costs about $348,000 more in total interest than the 15-year option.

Q. How much does an extra payment save on a mortgage?

Even one extra payment per year on a 30-year mortgage can shave 4–5 years off the loan term and save tens of thousands in interest. For a $300,000 mortgage at 6.5%, making one extra monthly payment per year saves approximately $82,000 in interest and pays off the loan in about 25 years.

Q. What factors affect how much I can borrow?

Lenders typically look at your debt-to-income ratio (ideally below 36%), credit score, down payment amount, employment history, and current interest rates. A higher credit score qualifies you for lower rates. Most financial advisors recommend keeping your housing payment below 28% of gross monthly income.

Disclaimer: Results are for informational purposes only and do not constitute professional advice. Always consult qualified professionals for important decisions.

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