Loan Payment Calculator
Calculate monthly loan payments, total interest paid, and the full cost of borrowing.
Formula
M = P · [r(1+r)^n] / [(1+r)^n − 1]
Tips
- Shortening the term raises the monthly payment but usually cuts total interest dramatically.
- This covers principal and interest only. Property tax, insurance, and fees are additional.
- Extra payments applied to principal reduce total interest more the earlier they are made.
Frequently asked questions
Why is so much of an early payment interest?
Interest is charged on the outstanding balance, which is highest at the start. As the balance falls, a growing share of each fixed payment goes to principal.