Loan & Mortgage Payment Calculator

Estimate your loan or mortgage payment with confidence

Whether you're buying a home, financing a car, or taking out a personal loan, knowing your monthly payment before you sign is essential. This free loan and mortgage payment calculator shows exactly what a fixed-rate loan will cost each month, how much interest you'll pay in total, and how the balance shrinks over time with a complete amortization schedule.

How the monthly payment is calculated

The calculator uses the standard amortization formula that banks and lenders use: the payment is based on your loan amount, the monthly interest rate (the annual rate divided by 12), and the total number of payments. Because the payment is fixed, early payments go mostly toward interest while later payments go mostly toward principal — which is exactly what the amortization schedule shows.

Mortgage, car and personal loans

The same math applies to any fixed-rate amortizing loan, so you can use this as a mortgage calculator, a car loan calculator, or a personal loan calculator. Try different terms and interest rates to see how they change your monthly payment and the total interest — a longer term lowers the monthly payment but typically increases the total cost of borrowing.

Choosing your currency

You can display results in a range of currencies including USD, EUR, GBP, JPY, CAD, AUD and more. The currency setting affects only how numbers are formatted — it does not convert between currencies — so the figures you enter are always used exactly as typed.

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The amortization formula explained

A fixed-rate loan pays the same amount every month. Each payment covers two things: interest on whatever you still owe, and principal that actually reduces the balance. Early on, most of the payment is interest because the balance is high. Near the end, most goes to principal because the balance is small — but the monthly payment never changes.

Lenders calculate that constant payment with the standard amortization formula:

M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1]

M is the monthly payment. P is the loan principal (the amount borrowed). r is the monthly interest rate — take the annual rate, divide by 100 to get a decimal, then divide by 12. n is the total number of monthly payments (years × 12, plus any extra months).

The expression (1 + r)ⁿ appears twice because interest compounds each month on the remaining balance. If the annual rate is 0%, the formula simplifies to P ÷ n — you are just dividing the loan evenly across the months with no interest charge.

How each month's payment splits

After the monthly payment M is known, every month follows the same pattern:

interest this month = remaining balance × r
principal this month = M − interest this month
new balance = old balance − principal this month

The amortization schedule in this tool adds those monthly steps up year by year so you can see how much went to interest versus principal each year.

Worked examples

Common mistakes to watch for

• Confusing APR with the note rate. The interest rate you enter here is the loan's nominal annual rate used in the payment formula. APR (Annual Percentage Rate) includes certain fees and is designed for comparing offers. Your monthly payment is driven by the note rate; APR is often slightly higher when origination fees are rolled in.
• Expecting the mortgage payment to equal PITI. This calculator shows principal and interest only. A real mortgage escrow often adds property tax, homeowner's insurance and sometimes PMI — the figure your lender quotes can be hundreds of dollars higher.
• Assuming a lower monthly payment is always cheaper. Stretching a loan from 4 years to 7 years cuts the payment but increases total interest. Always compare total cost, not just the monthly number.
• Ignoring variable-rate loans. This tool models fixed-rate amortizing loans. Adjustable-rate mortgages (ARMs), interest-only periods and balloon payments follow different rules.

When to use this calculator

Use it to estimate fixed monthly payments and total interest before you borrow — mortgages, auto loans, personal loans, or any loan with a constant rate and equal monthly instalments. The amortization schedule helps you see how much equity you build each year, which is useful when comparing 15- vs 30-year mortgages or deciding whether a shorter car loan fits your budget.

Do not use it for currency conversion — the currency dropdown only changes display symbols. For converting between dollars, euros or pounds, use the Currency Converter. For quick percentage calculations (like "what is 3.5% of this amount"), use the Percentage Calculator.

Because everything runs on your device, there's nothing to install and nothing is uploaded. Your numbers stay completely private, and the calculator works even when you're offline. This is one of many free browser tools on Uzetool — explore more tools as we add them.

Note: results are estimates for planning and comparison. Your actual payment may differ once taxes, insurance, fees and other lender-specific costs are included. Always confirm figures with your lender.