Enter the amount you borrow, the yearly interest rate and the number of years. The calculator shows the fixed monthly payment, the total interest and the total you pay back.
How the calculation works
It uses the standard formula for a fixed-rate loan with equal monthly payments: payment = P x r / (1 – (1 + r)^-n), where P is the amount, r the monthly rate (yearly rate / 12) and n the number of months. Fees, insurance and taxes are not included.
FAQ
Why is so much of the early payment interest?
Interest is charged on what you still owe. At the start you owe the most, so most of the payment is interest; later more of it pays down the loan.
How much does a shorter term save?
Try 30 and 15 years with the same rate: the monthly payment rises, but the total interest usually falls by more than half.
Does it work for variable rates?
Only for the current rate. If your rate can change, test a higher rate to see what a rise would cost each month.