loan-calculator
Calculate monthly payments, total interest, and amortization for any loan.
Formula
M = P[r(1+r)^n] / [(1+r)^n - 1], where M=payment, P=principal, r=monthly rate, n=number of payments
Frequently Asked Questions
What is the difference between a mortgage and a loan?
A mortgage is a specific type of loan secured by real estate (a house). Regular loans can be secured (backed by collateral like a car) or unsecured (like personal loans). Mortgages typically have longer terms (15-30 years) and lower interest rates than other loans.
How does amortization work?
Amortization is the process of paying off a loan through regular payments over time. Early payments are weighted toward interest, while later payments pay down more principal. As the balance decreases, less of each payment goes to interest.
What affects your loan interest rate?
Interest rates depend on credit score, loan type, term length, down payment amount, and current market rates set by the Federal Reserve. Better credit scores, larger down payments, and shorter terms typically get lower rates. Economic conditions also affect available rates.