How is monthly interest calculated?

The formula uses standard standard amortization equations dividing the annual rate by 12 months.

Why is a 30-year loan so much more expensive overall?

Interest is charged for twice as long. The monthly payment is lower, but total interest is often more than double that of a 15-year loan.

Does it handle 0% financing?

Yes. At 0% the payment is simply the loan amount divided by the number of months.

What is amortization?

Paying off a loan with equal monthly payments. Each payment covers that month's interest, and the rest reduces the balance.

Can I see the schedule month by month?

The table summarizes each year: interest paid, principal paid, and remaining balance.

Loan & Mortgage Calculator

Calculate mortgage and personal loan payments with fixed annual interest rates and tenure. Displays complete amortization tables.

Loan Amount ($)

Interest Rate6.5%

Loan Term

Monthly Payment

$1,580.17

Total Interest

$318,861.22

128% of principal

Total Cost of Loan

$568,861.22

360 total monthly payments

Annual Amortization Schedule (30 Years)Show yearly schedule

How to use Loan & Mortgage Calculator

Enter principal loan amount.
Set annual interest rate percentage.
Choose loan term in years.
Review monthly payment and annual payment schedule.

About Loan & Mortgage Calculator

Work out the monthly payment on a mortgage, car loan, or personal loan, along with the total interest you will pay. A year-by-year schedule shows how each year's payments split between interest and principal and what balance remains.

How the payment is calculated

The calculator uses the standard amortization formula for fixed-rate loans. The annual rate is divided by 12 to get a monthly rate, and the payment is set so the loan is paid off exactly at the end of the term.

Early payments are mostly interest because interest is charged on the full balance. As the balance falls, more of each payment goes to principal, which the schedule makes easy to see.

What is not included

Mortgage payments often also include property tax, home insurance, and mortgage insurance. Add those separately to estimate your full monthly housing cost.

Variable-rate loans change their payment when rates change, so treat the result as the payment at today's rate. Extra payments are not modeled; paying more than the minimum shortens the loan and reduces total interest.

Common uses

Mortgages: Compare 15-year and 30-year terms by monthly cost and total interest.
Car loans: Check whether a dealer's monthly payment matches the stated rate.
Personal loans: See the true cost of borrowing before you sign.
Refinancing: Compare your current loan with a new rate and term.

Questions about Loan & Mortgage Calculator

How is monthly interest calculated?: The formula uses standard standard amortization equations dividing the annual rate by 12 months.
Why is a 30-year loan so much more expensive overall?: Interest is charged for twice as long. The monthly payment is lower, but total interest is often more than double that of a 15-year loan.
Does it handle 0% financing?: Yes. At 0% the payment is simply the loan amount divided by the number of months.
What is amortization?: Paying off a loan with equal monthly payments. Each payment covers that month's interest, and the rest reduces the balance.
Can I see the schedule month by month?: The table summarizes each year: interest paid, principal paid, and remaining balance.

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