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Monthly payment, total interest, and total cost for any loan — car, personal, student, or mortgage. Updates as you type.
Frequently Asked Questions
How is the monthly payment calculated?
With the standard amortization formula: M = P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the amount borrowed, r the monthly rate (APR ÷ 12), and n the number of monthly payments. Every fixed-rate loan — car, personal, mortgage — uses this math.
Why is the total interest so high on long loans?
Interest accrues on the outstanding balance every month, and long terms keep that balance high for years. Stretching $25,000 at 7.5% from 5 to 7 years drops the payment ~$120/month but adds about $2,000 in interest.
Does this include taxes, insurance, or fees?
No — it computes principal and interest only. Mortgage escrow (property tax, insurance) and origination fees come on top. For a true cost comparison between offers, compare APRs, which fold most fees in.
How can I pay less interest overall?
Three levers: a shorter term, a lower rate (shop around or improve credit first), or extra principal payments — even small extra payments early in the loan cut the total interest disproportionately. Confirm your loan has no prepayment penalty.