Loan Calculator
Estimate monthly payments and total interest
Disclaimer: This loan calculator provides estimates only. It is not financial, tax, or legal advice. Actual loan terms, fees, APR, insurance, and taxes may differ. Consult a licensed financial professional or lender before borrowing.
What is a Loan Calculator?
A loan calculator estimates fixed monthly payments for a loan based on principal, annual interest rate, and term in years. It also shows total interest and total amount paid over the life of the loan — useful for mortgages, auto loans, and personal loans. Calculations run locally; figures you enter are not uploaded.
How to Use This Loan Calculator
- Enter the loan amount (principal) in dollars.
- Enter the annual interest rate as a percentage (e.g., 6.5 for 6.5%).
- Enter the loan term in years (e.g., 30 for a 30-year mortgage).
- Click Calculate Payment to see estimated monthly payment, total interest, and total cost.
Formula (Fixed Payment)
Monthly payment uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P = principal, r = monthly rate (annual rate ÷ 12 ÷ 100), n = number of monthly payments. This assumes a fixed rate and equal monthly payments — not adjustable rates, balloon payments, or extra fees unless you add them manually.
Example intuition: higher interest rates or longer terms increase total interest paid over time, even if monthly payments shrink with longer terms. Always compare total cost, not just the monthly number.
Frequently Asked Questions
What is included in the monthly payment estimate?
The estimate typically covers principal and interest (P&I) for a fixed-rate loan. Property tax, homeowners insurance, PMI, HOA fees, and other costs are usually not included unless your lender bundles them — check your loan estimate document.
Is APR the same as the interest rate?
Not always. APR includes certain fees and reflects borrowing cost more broadly. This calculator uses the nominal annual interest rate you enter. Compare official APR disclosures from lenders for apples-to-apples shopping.
Can I model a 15-year vs 30-year mortgage?
Yes. Run the calculation twice with the same principal and rate but different terms (e.g., 15 and 30 years) to compare monthly payment versus total interest paid.
Does extra principal payment affect results?
This basic calculator assumes no extra payments. Paying additional principal reduces total interest but is not modeled here. Use results as a baseline only.
Should I borrow the maximum I qualify for?
Qualification limits from lenders do not account for your full budget, savings goals, or job stability. Use this calculator to stress-test payments you are comfortable with, then speak with a licensed advisor about affordability — this is not personalized financial advice.
Related Tools
See Compound Interest Calculator, Percentage Calculator, and Tip Calculator.