Loan Calculator
Enter the amount, the annual interest rate, and the term. You get the fixed monthly payment, the total interest over the life of the loan, and the total you will repay.
Reading the result
The monthly payment is the headline number, but total interest is the one worth comparing between offers. Two loans with similar payments can differ by thousands over the full term. Shortening the term raises the payment and cuts the total interest; stretching it does the opposite. Running both versions here takes about ten seconds and shows the trade-off in plain numbers.
Frequently asked questions
How is the monthly payment calculated?
With the standard amortization formula: the loan amount, the monthly interest rate (annual rate divided by 12), and the number of months determine a fixed payment that pays the loan off exactly at the end of the term. Early payments are mostly interest; later ones are mostly principal.
Why does a longer term cost more in total?
The balance stays high for longer, so interest accrues on more money for more months. A $20,000 loan at 7% costs about $2,200 in interest over 3 years but about $3,800 over 5 years, even though the monthly payment drops.
Does this include fees and insurance?
No, it models principal and interest only. Origination fees, mortgage insurance, and property taxes come on top. For comparing offers, the APR quoted by the lender folds most fees in.
Can I use this for a mortgage?
Yes, the math is the same. Set the term in years (25 or 30 are typical) and use the quoted annual rate. Just remember the result is principal and interest, not the full monthly housing cost.
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