A loan of 250,000 at 6.5% a year over 30 years costs 1,580.17 a month, and 318,861 in interest over its life. Enter the amount, the yearly interest rate and the term in your currency; the calculator shows the payment, the total interest, how the first payment splits between interest and principal, and the formula with your numbers.
Monthly payment per 100,000 borrowed
Payments scale with the amount, so the table works for any currency: for 250,000, multiply by 2.5.
| Interest rate | 15 years | 20 years | 30 years | Total interest over 30 years |
|---|---|---|---|---|
| 3% | 690.58 | 554.60 | 421.60 | 51,777 |
| 4% | 739.69 | 605.98 | 477.42 | 71,870 |
| 5% | 790.79 | 659.96 | 536.82 | 93,256 |
| 6% | 843.86 | 716.43 | 599.55 | 115,838 |
| 7% | 898.83 | 775.30 | 665.30 | 139,509 |
| 8% | 955.65 | 836.44 | 733.76 | 164,155 |
Two patterns stand out. Going from 30 to 15 years raises the payment by about 40% but cuts the total interest by more than half. And on a 30-year loan, each extra percentage point raises the payment by roughly 10–13%: from 5% to 6%, the payment on 100,000 goes from 536.82 to 599.55.
Equal payments or equal principal?
| Equal payments (annuity) | Equal principal | |
|---|---|---|
| Monthly payment | The same every month | Highest at the start, then falls |
| Interest share | High at first, falls over time | Falls steadily |
| Total interest | Higher | Lower |
| Common in | US, UK, most of the world | Parts of Europe, some business loans |
On 120,000 over 10 years at 6%, equal principal starts at 1,600 a month and ends at 1,005; equal payments stay at 1,332.25 throughout. The equal-principal loan costs 36,300 in interest against 39,870 – cheaper, but harder on the budget in the first years.
How a payment splits
In the first month of the 250,000 example, interest is 250,000 × 6.5% ÷ 12 = 1,354.17, so only 226.00 of the 1,580.17 repays the loan. The balance falls slowly at first and faster later. That is why extra payments early in a loan save the most interest.
Rate, APR and effective rate
The rate in the calculator is the nominal yearly interest rate. Lenders must also show a broader figure that includes most fees: the APR in the US and UK, the effective annual rate in many other countries. Two offers with the same interest rate can have very different APRs, so compare those.
Before you sign
- Check whether the rate is fixed or variable: a variable rate can rise, and the payment with it.
- Ask what an early repayment costs; some loans charge a fee.
- Leave room in your budget: many lenders and advisers suggest keeping all debt payments below about a third of take-home income.
Everything is calculated on your device; nothing you type is sent to a bank or anyone else. Once zet4u is saved on your device, the calculator works offline as well.
Frequently asked questions
How is a monthly loan payment calculated?
For a loan with equal payments: payment = L × i ÷ (1 − (1 + i)^−n), where L is the amount, i the yearly rate divided by 12 and n the number of months. 250,000 at 6.5% over 30 years is 1,580.17 a month.
What is the difference between equal payments and equal principal?
With equal payments (an annuity), every payment is the same and the interest share falls over time. With equal principal, you repay the same part of the loan each month plus interest on the balance, so payments start higher and fall; total interest is lower.
Why is the total interest so high on a 30-year mortgage?
Because interest is charged on the balance for longer. At 6%, a 30-year loan of 100,000 costs 115,838 in interest; over 15 years it costs 51,895.
Does the payment include taxes and insurance?
No. Property taxes, insurance, fees and mortgage insurance are added by the lender and vary by country. Compare offers by their APR or effective annual rate, which includes most fees.
Sources
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