Finance category
Mortgage, loan, investing, tax, and money calculators.
Loan Calculator
Calculate your monthly loan payment, total interest, and total cost. Enter your loan details to see a complete payment breakdown with visual charts.
Monthly Payment
$1,264
Loan Principal
$200,000
Total Interest
$255,089
Total Cost
$455,089
Payment Breakdown
Principal
$200,000
Interest
$255,089
EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.
Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.
Learn more about our review process on the EveryCalc methodology page.
Calculation notes and example
Loan payment formula used here
For a fixed installment loan, monthly payment is calculated from principal, monthly interest rate, and number of payments. The formula spreads principal and interest into equal payments, but the interest share is higher at the beginning because the balance is larger. Total cost equals all payments plus fees, less any down payment or amount not financed. That makes the calculator useful for personal loans, equipment loans, and other debt where the payment is fixed.
Worked example
For a $25,000 loan at 10% APR over five years, the payment is about $531 per month and total interest is roughly $6,870. Shortening the term to three years raises the payment but cuts the interest sharply. If a lender charges an origination fee, compare the cash received with the amount repaid; a loan that looks cheaper by rate can be more expensive after fees.
Edge cases and practical tips
- APR and interest rate are not always the same when fees are financed or deducted upfront.
- A longer term may fit the budget but often increases total interest materially.
- Variable-rate loans need stress testing at a higher rate before you commit.
Useful companion tools: APR Calculator, Amortization Calculator, Debt Payoff Calculator, and Business Loan Calculator.
How to interpret the loan result
Best use
Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.
Cross-check
Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.
Watch for
Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.
This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.
Before relying on this loan estimate
Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.
Confirm source numbers
Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.
Separate cash flow from total cost
A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.
Run conservative cases
Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.
Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.
How to Use
- Enter the total loan amount (e.g., home price, car price).
- Enter your down payment amount, if any.
- Set the annual interest rate and loan term in years.
- View your monthly payment, total interest, total cost, and a pie chart showing the principal vs. interest breakdown.
Frequently Asked Questions
How is the monthly payment calculated?
Monthly payments are calculated using the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the loan principal, r is the monthly interest rate, and n is the total number of payments. This formula ensures equal monthly payments over the life of the loan.
How does the interest rate affect my payments?
Even small changes in interest rate can significantly impact your total cost. For example, on a $200,000 30-year mortgage, the difference between 6% and 7% is about $133 more per month and over $47,000 more in total interest. Always shop around for the best rate.
Should I make a larger down payment?
A larger down payment reduces your loan principal, which lowers both your monthly payment and total interest paid. For mortgages, putting 20% or more down also helps you avoid private mortgage insurance (PMI). However, consider keeping emergency savings available.
What loan term should I choose?
Shorter terms (e.g., 15 years vs. 30 years) have higher monthly payments but much lower total interest. A 15-year mortgage at the same rate saves tens of thousands in interest compared to a 30-year term. Choose based on what monthly payment fits your budget.
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