How is the monthly payment calculated?

The calculator uses the standard amortization formula: 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.

Does this include taxes and insurance?

No. This calculator computes principal and interest only. For a mortgage, your actual monthly payment will also include property taxes, homeowner's insurance, and possibly private mortgage insurance (PMI).

Can I use this for auto loans?

Yes. Enter the car loan amount, the annual interest rate from your lender, and the loan term (typically 3–7 years for auto loans). The formula is the same for any fixed-rate installment loan.

What happens if I make extra payments?

Extra payments reduce the principal faster, which decreases total interest and shortens the loan term. This calculator shows the standard schedule without extra payments.

Is a shorter loan term always better?

A shorter term means higher monthly payments but significantly less total interest. For a 30-year vs. 15-year mortgage at the same rate, the 15-year option can save tens of thousands in interest. Choose the term that fits your monthly budget.

Calculators

Loan Calculator

Estimate your monthly loan payment, total interest, and total cost for any loan amount, interest rate, and term. Works for mortgages, auto loans, personal loans, and student loans.

Loan Details

Loan Amount ($)

Interest Rate (%)

Loan Term (years)

Results

Monthly Payment

$1,580.17

Total Interest

$318,861.22

Total Cost

$568,861.22

Disclaimer: This calculator provides estimates for informational purposes only. It does not constitute financial advice. Actual loan terms, payments, and costs will vary based on your lender, credit profile, and loan agreement.

Usage notes

This calculator uses a standard amortization formula. Actual loan terms may include fees, insurance, and variable rates.
For mortgages, remember to budget for property taxes, homeowner's insurance, and possible PMI on top of the monthly payment.
Shortening your loan term significantly reduces total interest paid, even if the monthly payment is higher.

All Calculators Percentage Calculator Discount Calculator

How to Use This Tool

1Enter the total loan amount (principal) in the first field.
2Enter the annual interest rate as a percentage.
3Enter the loan term in years.
4Your estimated monthly payment, total interest, and total cost appear instantly.

Frequently Asked Questions

How is the monthly payment calculated?: The calculator uses the standard amortization formula: 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.
Does this include taxes and insurance?: No. This calculator computes principal and interest only. For a mortgage, your actual monthly payment will also include property taxes, homeowner's insurance, and possibly private mortgage insurance (PMI).
Can I use this for auto loans?: Yes. Enter the car loan amount, the annual interest rate from your lender, and the loan term (typically 3–7 years for auto loans). The formula is the same for any fixed-rate installment loan.
What happens if I make extra payments?: Extra payments reduce the principal faster, which decreases total interest and shortens the loan term. This calculator shows the standard schedule without extra payments.
Is a shorter loan term always better?: A shorter term means higher monthly payments but significantly less total interest. For a 30-year vs. 15-year mortgage at the same rate, the 15-year option can save tens of thousands in interest. Choose the term that fits your monthly budget.