A fixed-rate loan charges the same interest rate for the entire term. This calculator estimates your monthly payment, total amount paid over the life of the loan, and total interest cost.
How to use this calculator
- Enter the total loan amount.
- Enter the annual interest rate as a percentage.
- Enter the loan term in years.
- Review the monthly payment, total payment, and total interest.
Formula
Monthly payment is calculated using the amortization formula: M = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate, and n is the total number of monthly payments.
Example
A $200,000 loan at 6% annual interest over 30 years results in a monthly payment of about $1,199, with roughly $231,676 paid in interest over the full term.
Frequently asked questions
- Does this include taxes and insurance?
- No. This calculator covers principal and interest only. Property taxes, insurance, and other escrow costs are not included.
- What happens if I pay extra each month?
- Extra payments reduce the principal faster, which lowers total interest paid and can shorten the loan term. This calculator assumes standard fixed payments with no prepayment.