How to use the loan & mortgage calculator
- Enter the loan amount, the yearly interest rate and the term in years.
- Click Calculate.
- Read the monthly payment, total interest and the yearly breakdown of principal, interest and balance.
How the monthly payment is calculated
For a fixed-rate loan the payment is M = P × r ÷ (1 − (1 + r)−n), where P is the loan amount, r is the monthly rate (yearly rate ÷ 12) and n is the number of monthly payments. Early payments are mostly interest; over time more of each payment goes to the principal.
A shorter term means a higher payment but much less interest. Compare a few terms to see the difference.
Frequently asked questions
How do I calculate a monthly loan payment?
Enter the amount, the yearly rate and the number of years. The calculator applies the standard amortization formula.
Does it work for a mortgage?
Yes, for the principal and interest part of a fixed-rate mortgage. Property tax, insurance and fees are not included.
How can I pay less interest?
Choose a shorter term, make a bigger down payment or find a lower rate. Even small extra payments reduce the interest.
Is this a quote?
No. It is an estimate. Your lender will give the exact figures.