Loan Calculator
Plan your borrowing safely by calculating exactly how much you'll pay each month and in total interest.
The Math Behind It
M = P * [r(1+r)^n] / [(1+r)^n - 1]This standard amortization formula calculates the fixed monthly payment required to fully pay off a loan of a specific amount, interest rate, and term.
Example
A $250,000 home loan at 5.5% interest for 30 years will cost you $1,419.47 per month, resulting in $261,010 in total interest paid over the life of the loan.
Frequently Asked Questions
Amortization is the process of spreading out a loan into a series of fixed payments. While the payment stays the same, the portion going towards interest vs. principal changes over time.