How to use it
- Enter loan amount.
- Enter annual interest rate.
- Enter loan term in years.
- Click Calculate to see monthly payment, total interest and total cost.
What it does – The calculator takes your loan amount, annual interest rate and term to show three key figures: the monthly payment you’ll owe, the total interest you’ll pay over the life of the loan, and the grand total of all payments. Why it matters – Knowing the monthly amount helps you budget, while the total interest reveals the true cost of borrowing. How to read – The monthly payment is the amount due each month. The total interest is the extra money over the principal. The total of payments equals principal + interest. Use these numbers to compare loan offers, plan early repayments, or see how changing the term or rate impacts your wallet.
Pro tips
- Round the monthly result to the nearest dollar for a realistic budget view.
- Add a 5% buffer to the loan amount to cover fees or unexpected costs.
- Enter the exact annual rate, not the monthly rate, to avoid mis‑calculations.
- Compare multiple term lengths side‑by‑side to see interest savings.
Real-life examples
- First‑time homebuyer checking if a $350k loan fits their monthly budget.
- Refinance candidate evaluating how a lower rate changes total interest.
- Investor estimating cash flow for a rental property mortgage.
Case study
Sarah entered a $300,000 loan at 4.5% for 30 years; the calculator showed a $1,520 monthly payment, $247,000 total interest and $547,000 total cost. She then tried a 15‑year term, saw the payment rise to $2,290 but total interest drop to $112,000, helping her choose a shorter loan that saved $135,000 in interest.