Loan Calculator

The standard amortization formula: M = P · r · (1+r)ⁿ / ((1+r)ⁿ − 1), where P is the principal, r the monthly rate (annual rate ÷ 12) and n the number of monthly payments. A 0% loan is special-cased as P ÷ n. It is the same formula banks use for fixed-rate installment loans.

Interest each month is charged on the remaining balance, which is largest at the start. As the balance falls, the interest slice of each fixed payment shrinks and the principal slice grows — the schedule table shows exactly that shift over the first year.

No — it quotes principal and interest only. Property tax, homeowners insurance, HOA fees, mortgage insurance and origination fees are paid on top and vary too much per location to model honestly here.

The summary line shows it: total repaid minus the amount borrowed. As a rule of thumb, a 30-year loan at 6% ends up paying more in interest than the original principal — shortening the term is the most reliable way to cut that.

Two counting methods answer different questions. This tool uses amortization: every month the payment first covers the interest accrued that month on the remaining balance and then retires part of the principal, so the interest base keeps shrinking — that is how banks schedule fixed-rate installment loans. A simple-interest estimate (flat principal × rate × years, paid as a lump at the end) never shrinks the base, so it usually produces a different total. The comparison line under the result shows both numbers side by side; neither is wrong — they are different repayment structures.

Yes. Any fixed-payment, fixed-rate installment loan works — enter the amount borrowed, the annual percentage rate and the term in years. Credit cards with revolving balances do not fit this model.