Loan Payment Calculator
This loan payment calculator works out the fixed monthly payment for any amortized loan: a mortgage, car loan, personal loan, or student loan. Enter the amount you want to borrow, the annual interest rate, and how long you will take to repay it, and you will instantly see the monthly payment, the total amount you will repay, and how much of that is interest.
- Monthly payment
- $1,580.17
- Total paid
- $568,861.22
- Total interest
- $318,861.22
Knowing the true monthly cost before you sign is the single best defense against overborrowing. A small difference in interest rate or term can change the total interest by thousands, so it pays to compare a few scenarios side by side.
How it's calculated
M = P × [ r(1 + r)ⁿ ] / [ (1 + r)ⁿ − 1 ]
M is the monthly payment, P is the principal (amount borrowed), r is the monthly interest rate (annual rate divided by 12, as a decimal), and n is the total number of monthly payments (years × 12).
Worked example
Borrowing $250,000 at 6.5% annual interest over 30 years: r = 0.065 / 12 ≈ 0.005417 and n = 360. The monthly payment comes to about $1,580.17. Over the full term you repay roughly $568,861, of which about $318,861 is interest. That is more than the original loan itself.
Frequently asked questions
›Does this calculator work for mortgages?
Yes. Mortgages are standard amortized loans, so the same formula applies. Note that the result covers principal and interest only. Property taxes, homeowner's insurance, and HOA fees are billed separately and often added to the monthly payment by your lender.
›How can I lower my monthly payment?
You can borrow less, find a lower interest rate, or extend the term. Be aware that a longer term lowers the monthly payment but increases the total interest you pay over the life of the loan.
›What is amortization?
Amortization is the process of paying off a loan with fixed regular payments. Early payments are mostly interest; as the balance shrinks, more of each payment goes toward the principal.
›Does paying extra each month help?
Significantly. Extra payments go straight to the principal, which shortens the loan and reduces every future interest charge. Even $50–100 extra per month can cut years off a 30-year mortgage.
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