How to use it
- Enter Loan amount.
- Enter Annual rate %.
- Enter Term (years).
The formula
M = P·r(1+r)ⁿ / ((1+r)ⁿ−1)
Worked example
A $250,000 loan at 6.5% over 30 years costs about $1,580 per month in principal and interest.
Frequently asked questions
Does this include taxes and insurance?
No. It shows principal and interest only. Add property tax, insurance and any HOA fees for your full housing cost.
What rate should I enter?
Use a quote if you have one, otherwise the current average for your term as a starting point.
Tips
- Compare the total interest, not just the monthly payment.
- A larger down payment lowers both the loan and any insurance.
- Even small extra principal payments cut years off the term.
Key terms
- Principal
- The amount borrowed, before interest.
- Amortization
- Spreading repayment into equal periodic payments.
- Escrow
- Funds held for taxes and insurance.