ClarityHow to use this tool
- Enter loan amount, annual interest rate, loan term.
- Select Calculate to view the result.
- Check the method and assumptions below before using the result.
Input reference and sample values
Use the units and choices shown for each field. Sample values are provided for practice, not as recommendations.
| Input | Format and units | Sample |
|---|---|---|
| Loan amount | Numeric value. Unit: money. Minimum: 1. | 100000 |
| Annual interest rate | Numeric value. Unit: %. Zero or positive. Maximum: 100. | 6 |
| Loan term | Numeric value. Unit: years. Minimum: 1. Maximum: 50. | 30 |
Result for these sample inputs
599.550525 currency units
- Total interest
- 115838.189
- Total repayment
- 215838.189
Select Try the example in the form to load these values and calculate them again. This replaces the current form inputs. Compare the result with the method and worked explanation below.
The method, explained
Monthly payment = P × r ÷ [1 − (1 + r)^−n], where P is principal, r is annual interest ÷ 1200, and n is the number of monthly payments. At 0% interest, payment = P ÷ n.
A loan of 100,000 at 6% over 30 years has a monthly principal-and-interest payment of approximately 599.55.
Understanding your result
This payment covers the loan only. Budget separately for property taxes, insurance and other housing costs. Keep a scenario before changing the term to compare the payment and total interest.
What to keep in mind
This fixed-rate estimate excludes property taxes, insurance, association fees and lender charges. It is not a loan offer. Actual lender rounding may differ.
Common questions
Does this include a down payment?
Enter the amount you will borrow after the down payment, not the full property price.
Why is my lender payment higher?
Your payment may also include taxes, insurance, mortgage insurance or fees, none of which are included here.
Methodology maintained by ClarityKit. How these tools are built and checked.