How to calculate a loan payment
- Enter the loan amount.
- Enter the annual interest rate.
- Set the term in years.
- Look at the monthly payment, then scroll down to the yearly breakdown.
What a loan really costs
Before you sign for a car loan, a mortgage or a personal loan, it's worth seeing what it really costs. Enter the amount, the interest rate and how many years, and you'll see the monthly payment and the total interest you'll pay over the whole loan.
The yearly schedule is where it gets interesting. Early on, most of each payment goes to interest. The balance only really starts falling in the later years.
Frequently asked questions
Does this include taxes, insurance or fees?
No. It's the principal and interest only. For a mortgage, your real monthly cost will usually be higher once property tax and insurance are added.
Is a shorter loan always better?
You pay a lot less interest overall, but the monthly payment is higher. Try both terms here and compare the total interest. The difference is often bigger than people expect.