Loan and mortgage calculator
For guidance only. This is not financial advice.
- Principal repaid
- Interest
View the data in a table
The formula
Payment = P × i ÷ (1 − (1 + i)^−n)
P is the amount borrowed, i the monthly interest rate (the annual rate divided by 12) and n the number of payments.
Worked example
A $200,000 mortgage over 30 years at 3%:
- Monthly rate: 3% ÷ 12 = 0.25%.
- Number of payments: 30 × 12 = 360.
- Monthly payment: $843.21.
- Total repaid: $303,554.90, of which $103,554.90 is interest.
In the first year you pay $5,942.90 in interest and only $4,175.60 toward the balance. Over 25 years at the same rate, the payment rises to $948.42, but total interest falls to $84,526.79.
Using the result
Look at the term as well as the payment. A longer term lowers the payment but raises the total cost.
Read how loan amortization works, the difference between APR and interest rate and whether a fixed or adjustable rate fits you.
Frequently asked questions
What does amortization mean?
It is the process of paying off a loan through regular payments. With a fixed payment, early payments go mostly toward interest. Over time, more of each payment reduces what you owe.
Does this include fees, taxes or insurance?
No. It covers principal and interest only. Mortgage payments often include property taxes and insurance, and lenders may charge fees, so compare the APR as well as the interest rate.
Can I use it for an adjustable-rate loan?
You can estimate the payment at any given rate, but the payment on an adjustable-rate loan changes when the rate resets. Try higher rates to see what that could mean for you.