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Calculators & Finance
Loan & Mortgage Calculator
Monthly payment, total interest and a full amortization schedule.
What it does. A loan calculator computes the fixed monthly payment on an amortizing loan from the principal, the annual interest rate and the term. It also shows total interest paid and the full schedule of how each payment splits between interest and principal. This one supports USD, GBP, EUR and CAD, and models extra payments.
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How to use Loan & Mortgage Calculator
- Enter the loan amount, annual interest rate and term in years.
- Read the monthly payment, total interest and total repayment.
- Add an extra monthly payment to see how many months and how much interest it saves.
How is a monthly loan payment calculated?
Every amortizing loan uses the same formula, whether it is a 30-year mortgage or a 3-year car loan:
M = P × [ r(1+r)ⁿ ] / [ (1+r)ⁿ − 1 ]
where M is the monthly payment, P the principal, r the monthly interest rate (the annual rate divided by 12), and n the total number of payments.
A $350,000 mortgage at 6.5% over 30 years gives r = 0.0054167 and n = 360, producing a payment of $2,212.24. Over the full term that is $796,406 repaid on $350,000 borrowed — $446,406 in interest, more than the house.
The formula assumes a fixed rate and equal payments. Variable-rate and interest-only products behave differently, and a tracker mortgage recalculates whenever the base rate moves.
Why does so little of my early payment go to principal?
Because interest is charged on the outstanding balance, which is at its largest at the start.
On that same $350,000 mortgage at 6.5%, the first payment of $2,212 splits as $1,895.83 interest and $316.41 principal. Only 14% reduces the debt. The crossover — where more than half of the payment goes to principal — does not arrive until around month 220, more than eighteen years in.
| Year | Payment | To interest | To principal | Balance |
|---|---|---|---|---|
| 1 | $2,212 | $1,896 | $316 | $346,140 |
| 5 | $2,212 | $1,822 | $390 | $331,850 |
| 10 | $2,212 | $1,700 | $512 | $308,940 |
| 20 | $2,212 | $1,272 | $940 | $226,570 |
| 30 | $2,212 | $12 | $2,200 | $0 |
This is why an extra payment early is worth far more than the same payment later. Every dollar of extra principal in year one removes thirty years of compounding interest on that dollar.
How much does an extra payment actually save?
More than the arithmetic suggests, because each extra dollar of principal removes all future interest on that dollar.
On the $350,000 / 6.5% / 30-year example, adding $200 a month cuts the term by 6 years and 2 months and saves $108,097 in interest. Adding $500 a month cuts it by 11 years and 5 months and saves $193,603. Enter those figures in the calculator above and it will show you the same numbers — the prose and the tool run the same amortization.
Before doing it, check for a prepayment penalty. US mortgages originated after 2014 are heavily restricted under the CFPB’s Qualified Mortgage rules, but they still exist on some non-QM products. UK fixed-rate mortgages commonly cap overpayments at 10% of the balance per year, with an early repayment charge above that. Canadian closed mortgages typically allow 15–20% annually.
The comparison to make is against your other options: paying down 6.5% debt is a guaranteed 6.5% return, which beats a savings account and competes with equities at far lower risk. Paying down 3% debt while carrying credit card debt at 22% is the wrong order.
What is APR, and why is it higher than the interest rate?
The interest rate is the cost of borrowing the money. The APR — Annual Percentage Rate — includes the fees required to obtain the loan, expressed as an annualized rate.
On a mortgage that typically means origination fees, discount points, mortgage insurance and some closing costs. A 6.5% rate with $6,000 in fees on a $350,000 loan produces an APR of roughly 6.63%.
APR is the number to compare offers with, and it is legally required to be disclosed in the US under the Truth in Lending Act, in the UK under FCA rules, and across the EU under the Consumer Credit Directive. A lender advertising a low rate with high fees looks worse on APR, which is exactly why the disclosure exists.
The caveat is that APR assumes you hold the loan for its full term. If you expect to move or refinance in five years, a lower-rate-higher-fee option may not pay back its fees, and comparing total cost over your actual holding period is more informative than APR.
Frequently asked questions
What is the difference between a loan calculator and an EMI calculator?
Nothing but terminology. EMI — Equated Monthly Installment — is the term used in India and parts of Asia for the same fixed monthly payment this calculator computes.
Does it account for property tax and insurance?
The base calculation is principal and interest only. Add your escrow estimate separately — in the US, taxes and insurance frequently add 20–30% to the monthly outlay.
Can I model a bi-weekly payment schedule?
Yes. Paying half the monthly amount every two weeks produces 26 half-payments — 13 monthly equivalents — and typically cuts four to six years off a 30-year term.
What happens if I make one extra payment a year?
On a 30-year mortgage at typical rates it shortens the term by roughly four to five years. The tool shows the exact figure for your inputs.
Is the interest rate the same as APR?
No. APR includes required fees and is therefore higher. Compare offers on APR, not on the headline rate.
Does it work for interest-only loans?
The amortization schedule assumes a repayment loan. For interest-only, the monthly cost is simply principal × annual rate ÷ 12, with the full principal due at the end.
Are my figures sent anywhere?
No. The math runs in this page. Nothing about your finances is transmitted or stored.