How to Use
- 1 Enter your values
- 2 Click the Calculate button
- 3 Get your result instantly
- 4 Reset to calculate again
Loan Calculator
What Is a Loan Calculator?
A loan calculator is a free online tool that estimates your monthly mortgage or personal loan payment, total interest, and total repayment amount. It uses the standard amortization formula to give you an accurate picture of what borrowing costs before you commit to a lender.
How the Formula Works
P = Principal | r = Monthly interest rate | n = Number of payments
Where P is your loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments over the life of the loan.
Typical Loan Term Examples
| Loan Type | Common Term | Monthly Payment (per $100k) |
|---|---|---|
| 30-Year Fixed Mortgage | 30 years (360 months) | ~3~4.5% rate = ~$507/mo |
| 15-Year Fixed Mortgage | 15 years (180 months) | ~3~4.5% rate = ~$714/mo |
| Auto Loan | 3–7 years | Varies by rate and amount |
| Personal Loan | 1–7 years | Varies by credit score and lender |
💡 A 15-year mortgage costs more per month but saves tens of thousands in total interest compared to a 30-year term.
Frequently Asked Questions
How is monthly loan payment calculated?
Monthly payment is calculated using the amortization formula: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]. This calculator handles the math automatically — just enter your loan amount, interest rate, and loan term.
What is the difference between a mortgage and a personal loan?
A mortgage is secured by the property itself — if you fail to pay, the lender can foreclose. Personal loans are typically unsecured, meaning no collateral is required, which usually results in higher interest rates.
Does the loan calculator include property tax or insurance?
No. This calculator shows principal and interest only. Your actual monthly mortgage payment may also include property taxes, homeowner's insurance, and HOA fees, which vary by location.
How does the interest rate affect my monthly payment?
Even a small difference in interest rate has a big impact over 30 years. For a $200,000 loan at 4% vs 5% over 30 years, the total interest difference is about $46,000. This calculator helps you compare scenarios quickly.
Is this loan calculator free to use?
Yes. This loan calculator is completely free, requires no signup, and works on any device with a web browser.