How to use the Mortgage & Loan Calculator
- Enter the loan amount (the price minus your down payment).
- Enter the yearly interest rate and the term in years.
- Read the monthly payment and total interest, then check the yearly chart to see the balance fall.
How it works
This is a standard amortizing loan: every monthly payment is the same, and each one pays the interest due that month plus some of the balance. Early payments are mostly interest because interest is charged on a large balance. As the balance falls, more of each payment goes to principal, which the yearly chart shows.
The payment covers principal and interest only. A US mortgage payment often also includes property tax, homeowners insurance and sometimes mortgage insurance (PMI), which are not added here. Canadian fixed-rate mortgages compound semi-annually, so a Canadian lender's quoted payment can be slightly lower than this monthly-compounding result.
Formula
M = P × r(1 + r)ⁿ ÷ ((1 + r)ⁿ − 1) P = loan amount r = yearly rate ÷ 12 n = number of monthly payments
Example
A $350,000 loan at 6.5% over 30 years costs $2,212.24 a month. Over 360 payments you pay $796,406, of which $446,406 is interest. The same loan over 15 years costs $3,048.88 a month but only $198,798 in interest.
Example payments
| Loan | Rate | Term | Monthly | Total interest |
|---|---|---|---|---|
| $250,000 | 6.5% | 30 yrs | $1,580.17 | $318,861 |
| $350,000 | 6.5% | 30 yrs | $2,212.24 | $446,406 |
| $350,000 | 6.5% | 15 yrs | $3,048.88 | $198,798 |
| $350,000 | 5.5% | 30 yrs | $1,987.26 | $365,414 |
| $500,000 | 6.5% | 30 yrs | $3,160.34 | $637,722 |
Frequently asked questions
How does a shorter term change the cost?
A shorter term raises the monthly payment but cuts total interest sharply, because the balance is paid down faster. The table above compares 30 and 15 years on the same loan.
Do extra payments help?
Yes. Extra money normally goes straight to principal, which lowers the interest charged every month after. Check that your lender has no prepayment penalty.
Does this include property tax and insurance?
No. It shows principal and interest only. Add your lender's estimates for tax, insurance and any HOA fees to get the full monthly cost.
Can I use it for personal or student loans?
Yes. It works for any fixed-rate loan with equal monthly payments. For a car purchase, the auto loan calculator also handles trade-in and sales tax.
Last reviewed October 20, 2026. Spotted an error? Tell us.