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.
Pro 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.
Did You Know?
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.