Free Loan Calculator
Loan Calculator
When I bought my first car at 23, I signed loan papers I didn't understand because the monthly payment "seemed fine." I ended up paying nearly $8,000 in interest alone. A loan calculator would have saved me — type three numbers, see the real cost before you sign anything.
This free loan calculator shows your monthly payment, total interest, and total cost for any loan — mortgage, car, or personal.
π Loan Calculator
Monthly payment for a mortgage or any loan.
Estimate only. Actual payments vary by lender, taxes and insurance.
How to use this loan calculator
- Enter the loan amount — for example, 250000 for a $250,000 mortgage.
- Enter the annual interest rate, like 6.5.
- Enter the loan term in years, like 30.
- Your monthly payment, total interest, and total cost appear instantly.
Worked example
A $250,000 mortgage
Borrowing $250,000 at 6.5% for 30 years? Your monthly payment is $1,580.17 — but here's the part lenders hope you skip: you'll pay about $318,861 in interest alone. Total cost: over $568,000. That's why comparing rates matters so much.
Quick note: I'm not a financial advisor — this is an estimate for education, and actual payments vary by lender, taxes, and insurance. I wrote more about my expensive loan lessons in the loan calculator guide.
Frequently asked questions
How is a monthly loan payment calculated?
Lenders use an amortization formula: each payment covers interest plus a slice of principal. Early payments are mostly interest; later ones mostly principal. The calculator above runs the exact same math instantly.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing. APR (annual percentage rate) includes fees, so it's usually slightly higher — APR is the better number for comparing loan offers apples to apples.
Does a bigger down payment really help?
Yes — a lot. A bigger down payment means borrowing less, paying less interest, and owing less than the item's value. Even 5% more down can save thousands over the loan's life.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan has higher monthly payments but massively less total interest. A 30-year loan costs less per month but you pay far more overall. Run both scenarios above and compare the total interest — the difference usually shocks people.
Never sign loan papers without running the numbers first. And when you're done here, try the other free calculators on DailyToolsPro — the tip calculator is great for the smaller money moments.
Want all 13 tools in one place?
Explore All Free Tools