How is the monthly payment calculated?

Using the standard amortization formula: P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the principal, r the monthly rate and n the number of months.

Why is total interest so high?

Interest accrues on the outstanding balance every month for the whole term — a longer term means lower payments but much more total interest.

Calculate monthly loan payments, total cost and total interest online for free. Works for mortgages, car loans and personal loans.

Loan amount

Annual rate (%)

Term (years)

1,688.02

monthly payment for 300 months

506,405.37

Total paid

256,405.37

Total interest

Standard amortization formula with monthly compounding. Actual offers may add fees, insurance or a different compounding basis.

How is the monthly payment calculated?: Using the standard amortization formula: P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the principal, r the monthly rate and n the number of months.
Why is total interest so high?: Interest accrues on the outstanding balance every month for the whole term — a longer term means lower payments but much more total interest.