Loan / Mortgage Repayment Calculator
Calculate your monthly repayments, total interest paid, and see an amortization schedule for your loan or mortgage.
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Understanding Loan & Mortgage Repayments
A **loan or mortgage repayment calculator** helps you understand the financial commitments involved in borrowing money. It estimates your monthly payments, the total interest you'll pay over the loan's lifetime, and provides a detailed breakdown of each payment through an amortization schedule.
Key Inputs Explained:
- Loan Amount: The principal sum of money you are borrowing.
- Annual Interest Rate (%): The annual percentage rate charged on the loan principal. This is typically an Annual Percentage Rate (APR).
- Loan Term (Years/Months): The duration over which you will repay the loan. Longer terms usually mean lower monthly payments but higher total interest paid.
Key Outputs Explained:
- Monthly Repayment: The fixed amount you'll pay each month. This typically includes both principal and interest.
- Total Interest Paid: The cumulative amount of interest paid over the entire loan term.
- Total Amount Paid: The sum of the original loan amount and the total interest paid.
- Amortization Schedule (Optional): A table showing how each monthly payment is allocated between principal and interest, and the remaining loan balance over time. Early payments consist of more interest, while later payments pay down more principal.
How This Tool Works:
This calculator uses a standard loan amortization formula (for fixed-rate loans) to determine your monthly payments and interest. All calculations are performed client-side in your browser, ensuring your privacy.
The formula for calculating the monthly payment (M) is:
$M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]$
Where:
- $P$ = Principal loan amount
- $i$ = Monthly interest rate (annual rate / 12 / 100)
- $n$ = Total number of payments (loan term in months)