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Monthly payment, total paid, and interest for a loan.
Free to use, no sign-up required. Loan / Mortgage is one of 198 tools built into Xenition, alongside a chat that can use them for you.
Finds the fixed monthly payment for a loan or mortgage, plus the total you pay back and how much of that is interest.
The standard amortisation formula with monthly compounding: payment = P × r ÷ (1 − (1 + r)^−n), where P is the amount, r is the annual rate ÷ 12 ÷ 100 and n is years × 12. At 0% the payment is simply P ÷ n. Total paid = payment × n, and interest = total paid − P. Fees, taxes and insurance are not included.
Borrowing 250,000 at 6% over 30 years gives a monthly payment of 1,498.88. Over 360 payments you pay 539,595.47 in total, of which 289,595.47 is interest.
On a long loan, early payments go mostly to interest because the balance is still high. At 6% over 30 years, interest ends up larger than the loan itself.
Change the term and compare the Interest figure. A shorter term raises the monthly payment but cuts total interest sharply, because the balance is repaid before as much interest builds up.
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