Loan Calculator.

Work out the monthly payment on a mortgage, car or personal loan, the interest it costs over the term, and how much an extra payment each month saves.

Currency

Monthly payment

$1,580.17

$250,000 at 6.5% over 30 years

Total interest

$318,861.22

Total paid

$568,861.22

Repaid in

30 years

Extra saves

—

PrincipalInterest

Amortization schedule, by year

Year Principal Interest Balance
1 $2,794.31 $16,167.73 $247,205.69
2 $2,981.45 $15,980.59 $244,224.23
3 $3,181.13 $15,780.91 $241,043.10
4 $3,394.17 $15,567.87 $237,648.93
5 $3,621.49 $15,340.55 $234,027.44
6 $3,864.03 $15,098.02 $230,163.42
7 $4,122.81 $14,839.23 $226,040.61
8 $4,398.92 $14,563.12 $221,641.69
9 $4,693.52 $14,268.52 $216,948.17
10 $5,007.86 $13,954.18 $211,940.32
11 $5,343.24 $13,618.80 $206,597.07
12 $5,701.09 $13,260.95 $200,895.99
13 $6,082.90 $12,879.14 $194,813.09
14 $6,490.28 $12,471.76 $188,322.80
15 $6,924.95 $12,037.09 $181,397.85
16 $7,388.73 $11,573.31 $174,009.13
17 $7,883.56 $11,078.48 $166,125.56
18 $8,411.54 $10,550.50 $157,714.02
19 $8,974.88 $9,987.16 $148,739.15
20 $9,575.94 $9,386.10 $139,163.21
21 $10,217.26 $8,744.78 $128,945.95
22 $10,901.53 $8,060.51 $118,044.42
23 $11,631.62 $7,330.42 $106,412.80
24 $12,410.61 $6,551.43 $94,002.18
25 $13,241.78 $5,720.26 $80,760.41
26 $14,128.60 $4,833.44 $66,631.80
27 $15,074.82 $3,887.22 $51,556.98
28 $16,084.41 $2,877.63 $35,472.57
29 $17,161.61 $1,800.43 $18,310.96
30 $18,310.96 $651.08 $0.00

How to calculate a loan payment

  1. Choose your currency, then enter the amount you are borrowing.
  2. Enter the annual interest rate and the term in years.
  3. Read the monthly payment, the total interest and the year-by-year schedule.
  4. Add an extra monthly payment to see how much sooner the loan is repaid and the interest it saves.

About the loan calculator

A repayment loan is paid off in equal monthly instalments. Each payment first covers the interest on what you still owe, and the rest reduces the balance, so early payments are mostly interest and late ones mostly principal. Mortgages, car loans and most personal loans work this way; this is the same calculation as the EMI calculator, in the currency you choose.

The formula. The payment is P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the amount borrowed, r the monthly rate (the annual rate ÷ 12 ÷ 100) and n the number of months. For $250,000 at 6.5% over 30 years, r is 0.5417% and n is 360, which gives $1,580.17 a month. Over the term that is $568,861, of which $318,861 is interest: more than the loan itself.

Extra payments. Money paid on top of the instalment goes straight to the balance, so it stops earning interest for the rest of the term. On that same loan, an extra $100 a month repays it in 25 years 4 months instead of 30 and saves about $58,860 of interest. The earlier in the term you pay extra, the more it saves; check first that your lender allows overpayments without a fee.

What it leaves out. The payment here is principal and interest only. A mortgage payment often also carries property tax, insurance and fees, and an adjustable-rate loan changes its payment when the rate resets. Rates are nominal annual rates compounded monthly, the way lenders quote them.

Frequently Asked Questions

How is a monthly loan payment calculated?

With the annuity formula P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the amount, r the monthly rate and n the number of months. A $250,000 loan at 6.5% over 30 years is $1,580.17 a month.

How much interest will I pay over the life of a loan?

Multiply the payment by the number of months and take away the amount borrowed. On that $250,000 loan, 360 payments of $1,580.17 total $568,861, so $318,861 is interest: more than the loan itself.

How much do extra payments save?

Every extra payment goes straight to the balance, so it stops interest building on that amount for the rest of the term. $100 a month extra on the same loan repays it in 25 years 4 months instead of 30, and saves about $58,860 of interest.

Is a shorter loan term better?

It costs more each month and much less overall. $250,000 at 6.5% over 15 years is $2,177.77 a month but about $142,000 of interest in total, less than half the 30-year figure.

Does the payment include tax and insurance?

No. It is principal and interest only. Mortgage payments often also collect property tax, insurance and fees, and an adjustable-rate loan's payment changes when its rate resets.

Sources · Reviewed

  • Standard reducing-balance (annuity) amortisation formula, monthly compounding of the nominal annual rate

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