Loan Details
%
+
Monthly Payment
—
principal + interest
Total Payment
—
over full term
Total Interest
—
—% of loan
Payoff Date
—
— months
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
P = principal | r = monthly rate | n = number of payments
P = principal | r = monthly rate | n = number of payments
| Term | Monthly Payment | Total Interest | Total Cost |
|---|
| Month | Payment | Principal | Interest | Balance |
|---|
Loan Calculator — Tips & Guide
Use this free loan and mortgage calculator to estimate your monthly payment, see total interest paid, and understand how amortization works over time.
Extra Payments Save Big
Even an extra $100/month can shave years off your loan and save tens of thousands in interest. Use the extra payment field to see the impact instantly.
Compare Terms First
A 15-year mortgage has a higher monthly payment but dramatically lower total interest. Always review the term comparison table before deciding.
Rate vs. Term
In many cases, reducing your interest rate by even 0.5% saves more money over the life of the loan than shortening the term by 5 years.
The standard formula is M = P[r(1+r)ⁿ]/[(1+r)ⁿ−1], where P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. For a $250,000 loan at 6.5% for 30 years, monthly payment = $1,580.17.
A common rule is that your mortgage payment should not exceed 28% of your gross monthly income. So if you earn $6,000/month, aim for a payment under $1,680. Also account for property taxes, insurance (PITI), and HOA fees — these can add 25–35% to your base payment.
Amortization is the process of paying off a loan through regular equal payments. Early payments go mostly toward interest; later payments go mostly toward principal. The amortization schedule shows exactly how much of each payment reduces your balance versus how much goes to the lender as interest.
The most effective strategies are: (1) Make extra monthly payments — even small amounts reduce the principal and compound savings. (2) Make biweekly payments instead of monthly — this results in one extra full payment per year. (3) Refinance to a lower rate or shorter term if rates drop. (4) Round up your payments to the nearest $50 or $100.