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Loan Calculator

Work out the monthly payment on a loan or mortgage, plus the total interest over its life. Adjust the term to see what it really costs.

Monthly payment

$1,535.22

300 payments

Total interest

$210,565.62

84.2% of the amount borrowed

Total repaid

$460,565.62

Amount borrowed

$250,000.00

Principal and interest only. Tax, insurance and fees vary by lender and location, so they are not estimated here.

How to use the Loan Calculator

  1. Enter the amount. The sum borrowed, after any deposit.
  2. Add the rate and term. Use the annual rate the lender quotes and the length in years.
  3. Compare terms. Shorten the term to see how much interest it saves.

Frequently asked questions

What formula is used for the monthly payment?
The standard amortising payment formula, which spreads principal and interest so every payment is identical and the balance reaches exactly zero on the final one.
Why does a longer term cost so much more?
Because interest is charged on the outstanding balance every month. Paying it down slowly means a larger balance for longer, so a term twice as long can more than double the total interest.
Does this include tax, insurance or fees?
No. It calculates principal and interest only. Property tax, insurance and arrangement fees are real costs but they vary by lender and location, so they are not guessed at here.
What if the interest rate is zero?
Then the payment is simply the amount divided by the number of months, and the total interest is nothing. The calculation handles that case rather than dividing by zero.

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