How to use the Loan Calculator
Enter the amount, annual rate and term. Equal monthly payments (annuity) is how most mortgages, car loans and personal loans work: the payment stays the same while the interest share shrinks. Equal principal starts higher and falls each month, costing less interest overall.
Monthly payment formula: M = P × i / (1 − (1 + i)−n), where i is the monthly rate and n the number of months.
Frequently asked questions
Does this include taxes and insurance?
No. Add property tax, homeowners insurance and PMI separately to estimate a full mortgage payment.
How can I pay less interest?
A shorter term, a lower rate, or extra principal payments all cut total interest significantly.