Loan & Mortgage Calculator
Optional monthly extra
Variable Key
Monthly payment
Equal fixed payment that fully repays the loan.
Convert annual rate
Convert annual rate to monthly for the formula.
Total cost and interest
Total amount paid over the loan life.
Remaining balance
Loan balance after k payments.
A loan payment calculator determines your fixed monthly payment using the amortization formula. Each payment covers accrued interest first, with the remainder reducing the principal. Early payments are mostly interest; later payments are mostly principal.
Tip: To find the break-even point for paying points to lower your rate: divide the upfront cost by monthly savings. If 1 point ($2,000) saves $40/month, break-even is 50 months.
- 1Determine the principal P (amount borrowed)
- 2Convert annual rate to monthly: r = annual rate ÷ 12
- 3Set n = total number of monthly payments (years × 12)
- 4Apply: M = P × r(1+r)ⁿ / ((1+r)ⁿ − 1)
- 5Total interest paid = (M × n) − P
Extra payments save significantly
On a $200,000 30-year mortgage at 6.5%, adding just $100/month cuts 4 years off the loan and saves ~$42,000 in interest.
APR vs. interest rate
APR (Annual Percentage Rate) includes fees and closing costs in the effective rate. Always compare APR, not just the stated interest rate.
| Rate | 2 years | 3 years | 5 years | 10 years | 30 years |
|---|---|---|---|---|---|
| 3% | $43.06 | $29.08 | $17.97 | $9.66 | $4.22 |
| 4% | $43.42 | $29.52 | $18.42 | $10.12 | $4.77 |
| 5% | $43.87 | $29.97 | $18.87 | $10.61 | $5.37 |
| 6% | $44.32 | $30.42 | $19.33 | $11.10 | $6.00 |
| 7% | $44.77 | $30.88 | $19.80 | $11.61 | $6.65 |
| 8% | $45.23 | $31.34 | $20.28 | $12.13 | $7.34 |
Fun Fact
The word "mortgage" comes from Old French meaning "death pledge" — the pledge (debt) ends either when it is paid off or when the borrower dies.