Loan Calculator: Calculate Monthly Payment & Total Cost
Loan calculator online: calculate monthly payments, interest, and total cost for mortgages and personal loans with amortization.
Updated 2026-08-16
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Features
- Calculate monthly payment for any loan type (mortgage, auto, personal)
- Calculate total interest paid over the loan term
- Calculate total cost (principal + interest)
- Preview amortization schedule showing principal vs interest breakdown
- Support for various loan terms (1-30 years)
- Instant calculation as you type
- Works for fixed-rate loans only
- Compare scenarios one at a time: try different terms (15 vs 30 years), rates, or amounts and read the updated totals directly
- Shows the full cost picture: monthly payment, total interest, and total cost (principal + interest) in one view
How to Use
- 1Enter the loan amount (principal) in the first field.
- 2Enter the annual interest rate (e.g., 5.5 for 5.5%).
- 3Enter the loan term in years.
- 4View instant results: monthly payment, total interest, and total cost.
- 5Check the amortization preview to see how payments break down.
- 6Adjust values to compare different loan scenarios.
- 7Compare short-term vs long-term loans to see interest savings.
- 8Note that extra payments are not an input here: to estimate their effect, compare a shorter term, since extra payments effectively shorten the loan.
Frequently Asked Questions
What is the loan calculation formula?
The calculator uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n – 1], where M is monthly payment, P is principal, r is monthly interest rate, and n is number of payments. This formula assumes a fixed interest rate and equal monthly payments.
Does this work for variable rate loans?
No, this calculator is for fixed-rate loans only. Variable rate loans (ARMs) have changing interest rates that make long-term calculations unpredictable. For ARMs, calculate based on the initial rate as an estimate, but understand the rate may change.
Why is my actual payment different from the calculation?
The calculator shows principal and interest only. Your actual payment may include property taxes, insurance, PMI, HOA fees, or other costs. These additional costs can add hundreds of dollars to your monthly payment.
How accurate is the amortization schedule?
The schedule is mathematically accurate for the given inputs. However, real loans may have slight variations due to payment timing, rounding policies, or fees. Use this as a planning tool, not a replacement for official loan documents.
Should I choose a shorter or longer loan term?
Shorter terms have higher monthly payments but much lower total interest. For example, a 15-year mortgage typically saves tens of thousands in interest compared to a 30-year mortgage. Use this calculator to compare different terms and see the interest savings.
Can I calculate interest-only (先息后本) loans with this calculator?
No. This calculator models standard amortizing loans (equal monthly payments of principal plus interest). Interest-only loans, where you pay only interest each month and the full principal at maturity (common for Chinese business loans and some car financing), are not modeled. For those, the monthly interest is simply principal x annual rate / 12: e.g., 100,000 at 6% costs 500/month in interest, with the whole 100,000 still due at the end. Use a dedicated interest-only calculator or a spreadsheet for the full schedule.
Can I use this calculator for car loans or personal loans?
Yes. Any fixed-rate amortizing loan (auto, personal, student, or mortgage) uses the same math, so enter the amount, rate, and term and the result is correct. Two caveats: if the car loan has a balloon payment or residual value (a large final installment), this calculator cannot model it. The final balloon would be due on top of the schedule; and fees, insurance, and dealer add-ons are not included, so the quoted monthly payment may differ from the dealer's number.
What is an amortization schedule?
An amortization schedule is a table showing each loan payment broken down into principal and interest portions. Early payments are mostly interest; later payments are mostly principal. This calculator shows a preview of the first 12 months. Understanding this helps you decide if extra payments or refinancing makes sense.
How do extra payments affect my loan?
Extra payments directly reduce the principal balance, which decreases the total interest you'll pay and can shorten your loan term significantly. For example, on a $300,000 mortgage at 6.5%, adding $200/month could save tens of thousands in interest and pay off the loan years earlier.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus fees and other costs, giving a more complete picture of loan cost. This calculator shows the interest rate. When comparing loans, compare APRs for apples-to-apples comparison.
Can I use this calculator for student loans?
Yes. Student loan calculations work the same way: enter the total loan amount, interest rate, and repayment term. Note that some student loans have variable rates or income-driven repayment plans that this calculator doesn't model. For federal student loans, consider using their specific repayment calculators for more accuracy.
How does loan term length affect total cost?
Longer terms mean lower monthly payments but significantly more total interest. For example, a $300,000 mortgage at 6.5%: 30-year term = $1,896/month with $382,633 total interest; 15-year term = $2,614/month with $170,707 total interest. The 15-year loan saves $211,926 in interest despite higher monthly payments.
What is loan-to-value ratio (LTV) and how does it affect my loan?
LTV is the loan amount divided by the property's value. For mortgages, LTV under 80% typically avoids PMI (private mortgage insurance). Higher LTV means more risk for the lender, often resulting in higher interest rates. Use this calculator with different loan amounts to see how LTV affects your costs.
Why do loan calculator results differ between countries?
The math is the same everywhere, but conventions differ: payment frequency (weekly vs monthly), how interest accrues (daily vs monthly compounding), which fees enter the APR, and local rules, such as Malaysia's flat-rate car loans or India's monthly reducing balance. A loan calculator Malaysia or India often applies those conventions by default. This calculator uses monthly compounding, so compare it against your lender's terms rather than another country's calculator.
Why is my monthly payment still the same after I made extra payments?
Extra payments only lower the payment and total interest if the lender recasts or re-amortizes the loan; many lenders simply apply the payment to principal and keep the schedule; the monthly amount stays the same and the remaining term shortens instead. Ask your lender whether extra payments go to principal and whether the schedule is recalculated. This calculator has no extra-payment input: the closest approximation is comparing a shorter term, since extra payments effectively shorten the loan.