Monthly Loan Payment Calculator — Mortgage, Car and Personal Loans

1. 1Enter the amount and currencyType the sum you are borrowing after any deposit — for a mortgage, the price minus your down payment.
2. 2Add the interest rate and termEnter the nominal annual rate and the term in years or months. A 30-year mortgage is 30 years or 360 months.
3. 3Read the payment and interest totalThe monthly payment, total interest and total repaid appear at once. Open the yearly balance, or add an extra payment.

Mortgages, car loans and most personal loans are amortising: each fixed monthly payment covers that month's interest first, and the rest reduces the balance. As the balance falls the interest share shrinks and the principal share grows, though the payment never changes.

That is why early years barely dent the balance. On a 250,000 mortgage at 5.5% over 30 years the payment is about 1,419, of which 1,146 is interest in month one and only 274 repays debt.

The payment uses M = P × i ÷ (1 − (1 + i)⁻ⁿ), where P is the principal, i the monthly rate (annual rate ÷ 12 ÷ 100) and n the number of payments. At 0% that would divide by zero, so an interest-free loan is P ÷ n.

Totals come from running the loan month by month, charging interest on the balance then applying the payment, as a lender does. That is what lets an extra payment shorten the term.

Interest is charged on the balance, so time costs as much as rate. That 250,000 at 5.5% over 30 years costs about 261,000 in interest, more than the sum borrowed. Over 15 years the payment rises to roughly 2,043 but interest falls to about 117,700.

Rates compound too: one point, 5.5% to 6.5%, adds roughly 161 a month and about 58,000 in total interest. The APR differs from the nominal rate because it folds in arrangement fees — compare offers on APR, enter the nominal rate here.

An extra payment goes entirely to principal, cancelling the interest that balance would have generated for the rest of the term. Adding 200 a month to the mortgage above clears it 91 payments early and saves about 75,600 — the effect is largest when the balance is highest. Check whether overpayment triggers an early-repayment charge.

The figures cover principal and interest only. A real mortgage payment usually adds property tax, buildings insurance and, on a small deposit, mortgage insurance — take those from a tax assessment and an insurance quote. Fees, early-repayment penalties and rate changes are excluded, so a variable rate will diverge.

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