Mortgage, car, personal, student loans — calculate monthly payments, total interest and full amortization in seconds.
Everything you need to know about loans and mortgages
Your monthly payment is calculated using the amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments. Each payment covers interest first, then the remainder reduces your principal balance.
A good mortgage rate varies by country and credit score. In the US, rates have been in the 6–7% range for 30-year fixed mortgages. In the UK, typical fixed rates are 4–5.5%. Your personal rate depends on your credit score, loan-to-value ratio, and the lender you choose. Shopping around and comparing at least 3 lenders can save you thousands.
A larger down payment saves you money in multiple ways: it reduces your loan principal (so less interest overall), may qualify you for a lower interest rate, and helps you avoid Private Mortgage Insurance (PMI) which is typically required when your down payment is less than 20%. Use the calculator above to compare different down payment amounts.
Extra payments go directly toward your principal balance, which dramatically reduces the total interest you pay and shortens your loan term. For example, paying an extra $200/month on a $300,000 30-year mortgage at 6.5% could save you over $80,000 in interest and cut 5+ years off your loan. Use the Extra Monthly Payment field in our Mortgage tab to see your exact savings.
An amortization schedule is a complete table showing every payment over the life of your loan. It breaks down each payment into how much goes toward interest vs. principal. Early in the loan, most of your payment is interest. Over time, more goes toward principal. Our calculator generates the full schedule monthly or yearly — scroll down after calculating to see yours.
A 15-year mortgage has higher monthly payments but you pay far less interest overall — often half the total interest of a 30-year loan. A 30-year mortgage has lower payments, giving you more monthly cash flow flexibility. Use our compare tool to see the exact difference for your loan amount. Many financial advisors suggest the 30-year if you'd invest the difference — the 15-year if you want guaranteed interest savings.