Loan Calculator
Calculate your monthly loan payment, total interest, and total cost for any fixed-rate loan. Includes an amortization summary.
How to Use the Loan Calculator
This calculator helps you understand the true cost of any fixed-rate loan:
- Enter the loan amount — The total amount you plan to borrow.
- Enter the annual interest rate — The yearly interest rate as a percentage (e.g., 6.5%).
- Enter the loan term — The repayment period in years or months.
- Click "Calculate" — View your monthly payment, total payment, total interest, and a yearly amortization summary.
About Loan Calculations
A fixed-rate loan payment is calculated using the standard amortization formula: M = P[r(1+r)n] / [(1+r)n - 1], where M is the monthly payment, P is the principal (loan amount), r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments.
In the early stages of a loan, a larger portion of each payment goes toward interest. Over time, as the principal decreases, more of each payment is applied to the principal. This gradual shift is called amortization and is reflected in the amortization summary provided by this calculator.
Understanding your loan payments is essential for budgeting and financial planning. This calculator works for mortgages, auto loans, personal loans, student loans, and any other fixed-rate installment loan. For adjustable-rate loans, consult your lender for specific terms.
Loan Payment Examples
Below are step-by-step monthly payment calculations for common loan scenarios:
- $250,000 mortgage at 6.5% for 30 years: Monthly rate = 6.5% ÷ 12 = 0.5417%. Payments = 360. Monthly payment = $1,580.17. Total paid over 30 years: $568,861. Total interest: $318,861.
- $250,000 mortgage at 6.5% for 15 years: Monthly rate = 0.5417%. Payments = 180. Monthly payment = $2,178.42. Total paid: $392,116. Total interest: $142,116. You save $176,745 in interest compared to the 30-year term.
- $35,000 car loan at 5.9% for 5 years: Monthly rate = 0.4917%. Payments = 60. Monthly payment = $675.27. Total paid: $40,516. Total interest: $5,516.
- $10,000 personal loan at 8% for 3 years: Monthly rate = 0.6667%. Payments = 36. Monthly payment = $313.36. Total paid: $11,281. Total interest: $1,281.
- $50,000 student loan at 4.5% for 10 years: Monthly rate = 0.375%. Payments = 120. Monthly payment = $518.15. Total paid: $62,178. Total interest: $12,178.
Quick Reference: Monthly Payments by Loan Amount
This table shows approximate monthly payments for common loan amounts at different interest rates over a 30-year term. Use it to quickly estimate your mortgage or loan payment.
| Loan Amount | 5% | 6% | 7% | 8% |
|---|---|---|---|---|
| $100,000 | $537 | $600 | $665 | $734 |
| $200,000 | $1,074 | $1,199 | $1,331 | $1,468 |
| $300,000 | $1,610 | $1,799 | $1,996 | $2,201 |
| $400,000 | $2,147 | $2,398 | $2,661 | $2,935 |
| $500,000 | $2,684 | $2,998 | $3,327 | $3,669 |
Frequently Asked Questions
The monthly payment uses the formula M = P[r(1+r)^n]/[(1+r)^n-1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly payments. This formula ensures each payment covers interest and principal so the loan is fully paid off by the end of the term.
Amortization is the process of paying off a loan through regular installments. Each payment consists of an interest portion and a principal portion. Early in the loan, payments are mostly interest. Over time, more goes toward principal. The amortization schedule shows this breakdown for each period.
Yes, this calculator is suitable for any fixed-rate loan, including mortgages. Enter your mortgage amount, interest rate, and term (commonly 15 or 30 years) to see your monthly payment and total cost. Note that actual mortgage payments may also include property taxes, insurance, and PMI.
With a 0% interest rate, the monthly payment is simply the loan amount divided by the total number of months. There is no interest cost, making the total payment equal to the original loan amount.
A 15-year mortgage has higher monthly payments but saves significantly on total interest. For example, a $300,000 loan at 6% costs $1,799/month over 30 years (total interest: $347,515) versus $2,532/month over 15 years (total interest: $155,683). Choose based on what fits your monthly budget while maximizing interest savings.
Extra payments go directly toward reducing the principal, which reduces the total interest paid and shortens the loan term. For example, adding just $100/month to a $250,000 mortgage at 6.5% can save over $55,000 in interest and pay off the loan nearly 5 years early. Even one extra payment per year can make a significant difference.
The interest rate is the cost of borrowing the principal amount. The APR (Annual Percentage Rate) includes the interest rate plus other fees and costs (such as origination fees, closing costs, and discount points), giving a more complete picture of the total borrowing cost. APR is always equal to or higher than the interest rate.
PMI (Private Mortgage Insurance) is typically required when your down payment is less than 20% of the home's purchase price. PMI protects the lender if you default on the loan. It usually costs between 0.5% and 1% of the loan amount per year and can be removed once you reach 20% equity in your home.