Loan & Mortgage Calculator
Calculate monthly payments and total interest for any loan.
How Does This Loan Calculator Work?
Enter the loan amount, annual interest rate, and loan term in months or years. The calculator instantly computes your monthly payment, total interest paid over the life of the loan, and the total amount you will repay. It uses the standard amortization formula used by banks and financial institutions worldwide.
What Types of Loans Can I Calculate?
This calculator works for any fixed-rate loan including mortgages, auto loans, personal loans, student loans, and business loans. As long as the loan has a fixed interest rate and regular monthly payments, this tool will give you accurate results.
Why Is It Important to Calculate Loan Payments Before Borrowing?
Understanding your monthly payment helps you budget accurately and avoid overextending your finances. Seeing the total interest cost reveals how much you will actually pay beyond the loan principal, which can be eye-opening for long-term loans like 30-year mortgages. Comparing different loan terms and rates helps you find the most affordable option.
Is This Loan Calculator Free and Private?
Yes. There are no fees, no account required, and no data collection. All calculations run in your browser using JavaScript. Your financial information stays on your device and is never transmitted anywhere.
What Is the Standard Loan Amortization Formula?
The monthly payment formula is M = P × [r(1+r)^n] / [(1+r)^n - 1], where 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. This formula assumes a fixed interest rate and equal monthly payments over the life of the loan.
How Does Loan Term Length Affect Total Cost?
Longer loan terms mean lower monthly payments but significantly higher total interest paid. A $200,000 mortgage at 6% interest costs $1,199/month over 30 years (total interest: $231,677) versus $1,688/month over 15 years (total interest: $103,788). The shorter term saves over $127,000 in interest. Use this calculator to compare different term lengths side by side.