Loan payment calculator
Calculate your monthly payment, total interest, and total cost for any loan — mortgages, auto loans, personal loans.
Loan payment formula (EMI)
M = P × [r(1+r)n] / [(1+r)n − 1]
Where: M = monthly payment, P = principal (loan amount), r = monthly interest rate (annual rate ÷ 12), n = total number of payments (years × 12).
Example: $250,000 mortgage at 6.5% for 30 years
Monthly rate = 6.5% ÷ 12 = 0.5417%. Total payments = 360.
Monthly payment = $1,580.17. Over 30 years you pay $568,861 total — meaning $318,861 is interest alone.
How loan term affects your payment
For a $250,000 loan at 6.5%:
30 years: $1,580/month — lower payment, $318,861 total interest.
15 years: $2,179/month — higher payment, $142,143 total interest.
The 15-year loan saves $176,718 in interest but costs $599 more per month.
Types of loans this calculator works for
Mortgage (home loan): Typically 15 or 30 years at 3–8% depending on market conditions.
Auto loan: Usually 3–7 years at 4–10%. Shorter terms save significantly on interest.
Personal loan: Typically 1–7 years at 6–36% depending on credit score.
Student loan: 10–25 year repayment plans at 3–8% for federal loans.
Frequently asked questions
What is amortization?
Amortization is the process of paying off a loan through equal monthly payments. Each payment covers both interest and principal. Early payments go mostly toward interest; later payments go mostly toward principal.
How does extra payment help?
Paying an extra $100/month on a $250,000 mortgage at 6.5% saves about $72,000 in interest and pays the loan off 5 years early.
What's the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus fees, points, and other costs — giving you the true yearly cost.