Loan Calculator: Monthly Payment and Interest
Work out the monthly payment, total interest and full repayment schedule of a loan or mortgage, with equal payments, equal principal or interest only, and an optional interest-only period.
Principal and interest paid each year
Repayment schedule
| Year | Payment | Principal | Interest | Balance |
|---|
How the schedule is calculated
- Equal payments: payment = P × r ÷ (1 − (1 + r)^−n), with P the amount, r the monthly rate and n the number of monthly payments after any interest-only period.
- Each month's interest is the remaining balance × r, rounded to the currency's smallest unit (cents, or whole yen and won). The last payment clears what is left, so the schedule adds up exactly.
- Flat rate: each month's interest is the original amount × r, so the interest does not fall as the loan is repaid. The effective annual rate shown is the rate on the balance that the same payments would cost.
- The monthly rate r is the annual rate ÷ 12 for most loans. Canadian mortgages state a rate compounded half-yearly: r = (1 + rate ÷ 2)^(1/6) − 1. An EU APR is an effective annual rate: r = (1 + APR)^(1/12) − 1.
- Fees, insurance, taxes, payment holidays and changes of a variable rate are not included. Lenders may round, count days or set the first payment differently, so their figures can differ slightly.
- Everything runs in your browser. The amounts you enter are not sent to LeedyBox or saved.
Source: Interest Act (R.S.C., 1985, c. I-15), section 6; FCAC: sample credit agreement for a fixed-rate mortgage (archived) · Last checked:
Source: Directive (EU) 2023/2225 (consumer credit), Annex III · Last checked:
Wrong result? If a figure looks wrong, email us the amount, rate, term and method you entered and the figure you expected (from your lender's offer, for example), so we can check it.
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How to use
- Enter the loan amount, choose the currency and type the annual interest rate from the loan offer.
- Set the term in years and months, and, if the loan starts with months of interest only, the length of that period.
- Pick the repayment method stated in your contract: equal payments, equal principal, interest only with the principal at the end, or a flat rate charged on the original amount.
- Leave "How the annual rate is applied" on the first option unless your rate is a Canadian mortgage rate or an EU APR.
- Read the monthly payment and total interest, then open the schedule by year or by month. "Copy table" copies it for a spreadsheet.
Frequently asked questions
How is a monthly loan payment calculated?
For equal payments the formula is P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r the monthly rate (the annual rate ÷ 12) and n the number of payments. $200,000 at 5% over 30 years is $1,073.64 a month.
Which costs less: equal payments or equal principal?
Equal principal costs less interest in total, because the balance falls faster, but the first payments are higher. Equal payments keep every payment the same, which is easier to budget.
What does an interest-only period do?
During it you pay only the interest and the balance does not fall. The principal is then repaid over the remaining months, so those payments are higher and the total interest grows.
Why is my lender's figure a little different?
Lenders may count interest by the actual days in each month, round differently, add fees or insurance to the payment, or set the first payment date apart. The calculator shows the standard monthly schedule without those extras.
What is the difference between the interest rate and the APR?
The interest rate sets the interest on the balance. An APR also counts fees and, in the EU, is an effective annual rate. To get the payment, enter the interest rate from your contract; use the APR option only when no fees are included.
Is what I enter sent anywhere?
No. The calculation runs in your browser, and the page does not save the amounts you enter.