How to use it
- Enter loan amount, annual interest rate and term in years.
- Click the Calculate button.
- Review monthly payment, total payment and total interest results.
What this calculator does
It takes the loan amount, annual interest rate and loan term you provide and instantly shows three key figures: your monthly payment, the total amount you’ll pay over the life of the loan, and the total interest you’ll spend.
Why it matters: knowing these numbers helps you compare your current mortgage to a refinance offer, spot potential savings, and decide if the new rate justifies closing costs.
How to read the output: the monthly payment is the amount you’ll owe each month. Multiply it by the number of months (term × 12) to get the total payment. Subtract the original loan amount to see the total interest you’ll pay.
All calculations assume a fixed rate and monthly payments, no hidden fees.
Pro tips
- Round the loan amount to the nearest $1,000 for a quick sanity check.
- Use the exact annual rate; don’t convert to a monthly percent yourself.
- Enter the full term in years—partial years can skew the result.
- Double‑check that the rate is APR, not just the nominal rate.
Real-life examples
- A homeowner wants to know if a lower rate will reduce their monthly mortgage cost.
- A recent graduate is evaluating refinancing a student loan to a shorter term.
- Someone with high‑interest credit‑card debt is checking if a cash‑out refinance saves money.
Case study
Jane had a 30‑year, $200,000 mortgage at 4% APR. Using the calculator, she saw a monthly payment of $955, total payment $343,800 and interest $143,800. After refinancing to 3.5%, her new payment dropped to $898, saving $57 per month and $30,000 in interest over the loan life.