Utilz
Loan Calculator
Calculate your monthly payment and total interest
Want to learn more? Read our guide: Guide to Loan Interest Calculations
Why Use This Tool?
- Compare different loan scenarios before committing to a mortgage or personal loan.
- Understand exactly how much you will pay in interest over the life of the loan.
- Plan your monthly budget by knowing your exact payment amount upfront.
Formula
Monthly Payment M = P x r(1+r)^n / ((1+r)^n - 1), where P = principal, r = monthly interest rate (annual rate / 12 / 100), n = total number of months. For example, a $200,000 loan at 5.5% for 30 years: r = 0.004583, n = 360, M = $1,135.58/month.
How to Use
- Enter the loan amount (principal)
- Enter the annual interest rate (%)
- Enter the loan term in months
- View your monthly payment, total interest, and total amount
FAQ
How is the monthly payment calculated?
We use the standard amortization formula: M = P × r(1+r)^n / ((1+r)^n - 1), where P is principal, r is monthly rate, and n is number of months.
Does this include taxes and insurance?
This calculator shows principal and interest only. Actual payments may be higher when property taxes, insurance, and other fees are included.
What is the difference between fixed and variable rate loans?
A fixed rate stays the same for the entire loan term, making payments predictable. A variable rate can change over time based on market conditions, which may increase or decrease your payment.
How does loan term length affect total cost?
A longer loan term means lower monthly payments but more total interest paid. A shorter term has higher monthly payments but saves significantly on total interest over the life of the loan.
What is the difference between fixed and variable interest rates?
A fixed rate stays the same throughout the loan term, making payments predictable. A variable rate can change with market conditions, potentially starting lower but carrying the risk of increases.