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Loan / Mortgage

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.

How to use Loan / Mortgage

  1. Enter the Loan amount, the money you borrow.
  2. Enter the Annual rate % and the Term (years).
  3. Read the Monthly payment, Total paid and Interest.

How it works

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.

Example

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.

Questions about Loan / Mortgage

Why is the interest more than the amount I borrowed?

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.

How much does a shorter term save?

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.

What it takes

Use it from chat

You do not have to open Loan / Mortgage to use it. Ask Xenition in plain language and it runs the right tool, then carries the answer into whatever you are working on — a document, a spreadsheet, a deck.

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