Loan Payment Calculator
Calculate monthly payments for any loan or mortgage. See total interest paid over the life of the loan.
Frequently Asked Questions
How are monthly loan payments calculated?
Monthly payments are calculated using the amortization formula, which factors in the loan amount, interest rate, and loan term. Each payment covers both principal and interest, with early payments going more toward interest.
What is amortization?
Amortization is the process of spreading a loan into a series of fixed payments over time. Early in the loan, a larger portion of each payment goes toward interest. Over time, more goes toward the principal balance.
How does loan term affect total cost?
A longer loan term means lower monthly payments but significantly more total interest paid. For example, a $200,000 mortgage at 7% costs about $279,000 in interest over 30 years vs. $143,000 over 15 years.
Should I make extra payments on my loan?
Making extra payments toward principal can save thousands in interest and shorten your loan term. Even small additional monthly payments make a significant difference over time due to reduced interest accrual.