What's the formula for a monthly loan payment?

M = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the principal, r is the monthly interest rate (APR ÷ 12), and n is the number of payments.

Does this include taxes and insurance?

No — this is principal + interest only. Use the mortgage calculator for PITI (principal, interest, taxes, insurance) and PMI.

How do extra payments affect the loan?

Extra principal payments shorten the term and reduce total interest dramatically. The amortization schedule shows the impact month by month.

What's the difference between APR and interest rate?

The interest rate is the cost of borrowing money. APR includes the interest rate plus fees, points, and other costs — it's the apples-to-apples comparison number lenders are required to disclose.

Loan Calculator

Monthly payment, total interest, schedule

Calculators

Loan Calculator

Monthly payment, total interest, schedule

Loan amount Interest rate (APR %) Term (years)

About this tool

Estimate the monthly payment, total interest, and total cost of a fixed-rate loan or mortgage. Enter the loan amount, the annual percentage rate (APR) and the term in years — the calculator returns the standard amortising-loan payment plus a visual split of how much of your money goes to principal versus interest over the life of the loan.

Formula

Monthly payment M = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

where P = principal, r = monthly rate (APR / 12 ÷ 100), n = term in months

Total paid = M × n · Total interest = total paid − principal

How to use

1 Enter the loan amount (principal).
2 Enter the interest rate as an annual percentage (APR).
3 Enter the term in years.
4 See the monthly payment, total interest, total cost, and principal-vs-interest split.

Examples

$250,000 · 6.5% APR · 30 years	~$1,580/mo · ~$319,000 interest · $569,000 total
$30,000 · 7% APR · 5 years	~$594/mo · ~$5,640 interest
$100,000 · 4% APR · 15 years	~$740/mo · ~$33,140 interest

Frequently asked questions

Yes — the same fixed-rate amortising formula applies to mortgages, auto loans, personal loans, and student loans. Property taxes, insurance, PMI, and HOA fees are not included.

The interest rate is the rate charged on the principal. The APR (Annual Percentage Rate) bundles in some upfront fees too, so it is usually slightly higher. For a quick estimate, treat APR and rate as the same.

Banks include fees, escrow, insurance, or different rounding. This calculator gives the bare principal+interest payment. Real bills can be $50–$500 higher.

Zero-interest loans amortise as principal divided by the number of months — total cost equals the principal.

Not in this version. The principal-vs-interest split bar shows the lifetime totals; future updates may add a month-by-month schedule.

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Loan Calculator

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