Mortgage & Loan Calculator
How this calculator works
Monthly payment is calculated using the standard amortization formula, which spreads your loan amount across equal monthly payments over the term you choose, at your given interest rate, so the balance reaches zero by the end.
Early payments are mostly interest; later payments are mostly principal. Adding extra toward principal each month reduces the balance faster, which lowers the interest charged on future payments and can shave years off the loan.
What's not included
For a mortgage specifically, your actual monthly payment (often called PITI) usually includes property tax and homeowners insurance, and possibly private mortgage insurance (PMI) if your down payment is under 20%, or HOA dues. This tool estimates principal and interest only — build in a buffer for the rest.
Shopping for a rate
Even a small rate difference matters over a 30-year term. Try running the numbers here at a couple of different rates you've been quoted to see the real dollar impact before committing to a lender.
Common questions
Monthly payment is calculated using the loan amount, interest rate, and term with the standard amortization formula, which spreads principal and interest across equal monthly payments so the loan is fully paid off by the end of the term.
The interest rate is the cost of borrowing the principal. APR also includes certain fees and closing costs, so it's usually slightly higher than the interest rate and is a better number for comparing loan offers.
This calculator estimates principal and interest only. For a mortgage, your actual monthly payment (often called PITI) will also include property tax and homeowners insurance, and possibly PMI or HOA dues, which vary by location and lender.
Paying extra toward principal each month reduces the balance faster, which shortens the loan term and reduces total interest paid, since interest is calculated on the remaining balance.