Loan & Mortgage Calculator
Calculate monthly payments, total interest paid, and estimated payoff date for any loan or mortgage. Enter an extra monthly payment to see how much faster you can pay it off.
Frequently Asked Questions
How is the monthly payment calculated?
The standard amortization formula is used: M = P × r(1+r)ⁿ / ((1+r)ⁿ − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. Each payment covers that month's interest first, with the remainder reducing the principal.
What is amortization?
Amortization is the process of spreading a loan into fixed periodic payments. Early payments are mostly interest; later payments are mostly principal. An amortization schedule shows the exact breakdown for every payment over the life of the loan.
Should I make extra payments?
Extra payments go directly toward the principal, which reduces the total interest you pay and shortens the loan term. Even a small extra payment each month can save thousands of dollars in interest over the life of a mortgage. Check with your lender that there are no prepayment penalties first.