Loan and Mortgage Calculator
The monthly payment comes from the standard amortization formula using loan amount, monthly rate and number of payments.
Worked example
| Loan amount | $200,000 |
|---|---|
| Annual interest rate | 6.5% |
| Loan term (years) | 30 |
| Monthly Payment | $1,264.14 |
| Total Payment | $455,089 |
| Total Interest Paid | $255,089 |
How it is calculated
Monthly rate r = annual rate / 100 / 12 and payments n = years x 12. Payment = P x r x (1+r)^n / ((1+r)^n - 1).
Total payment = payment x n. Total interest = total payment - loan amount.
Assumptions and limits
- Assumes a fixed rate and equal monthly payments.
- Property tax, insurance, fees and extra payments are not included.
Educational estimate only; not financial, tax, legal or investment advice.
FAQ
How is a monthly loan payment calculated?
With the amortization formula. For $200,000 at 6.5% over 30 years, the payment is $1,264.14 a month.
How much interest will I pay over the loan?
Total payments minus the amount borrowed. In the example, about $255,089.
Does the result include taxes and insurance?
No. It covers principal and interest only.