Loan Calculator

Fixed rate loans maintain the same interest rate throughout the entire loan term. This provides predictable payments and protection against interest rate increases. Most traditional mortgages are fixed rate loans.

ARMs start with a fixed interest rate for an initial period (typically 3, 5, 7, or 10 years), then adjust based on market conditions. These can offer lower initial payments but carry the risk of payment increases when rates adjust. Note: This calculator treats ARMs as fixed rate for calculation purposes.

Balloon loans have regular payments for most of the term, but end with a large "balloon" payment of the remaining principal. These are often used in commercial lending or when borrowers expect to refinance or sell before the balloon payment is due.

Interest-only loans require payments of only the interest portion for a specified period, typically 5-10 years. After this period, payments increase significantly to include principal. The final payment includes the entire remaining principal balance. These loans offer lower initial payments but don't build equity during the interest-only period.

• • Enter your total loan amount (the amount you're borrowing)
• • Specify down payment amount (reduces the principal you'll pay interest on)
• • Set your interest rate (APR - annual percentage rate)
• • Choose loan term (15, 20, 25, or 30 years)
• • Select loan type based on your needs

• • Choose payment frequency (how often you'll make payments)
• • Select compounding frequency (how interest is calculated)
• • Add extra payment amount if you want to pay more than required
• • Set loan start date for accurate schedule generation

• • Property Tax: Annual property taxes (varies by location)
• • Insurance: Homeowner's insurance premium
• • PMI: Private Mortgage Insurance (typically required with <20% down payment)
• • Loan Fees: Closing costs, origination fees, etc.

• • Click "Calculate Loan" to generate results
• • Review monthly payment breakdown
• • Examine amortization schedule
• • Use comparison tools for different scenarios
• • Adjust inputs to see how changes affect costs

The four main cards show:

• Monthly Payment: Total amount due each payment period (includes principal, interest, taxes, insurance, PMI)
• Total Payment: Sum of all payments over the loan life plus additional costs
• Total Interest: Total interest paid over the loan term
• Principal Amount: Amount being financed after down payment

This section shows exactly where your money goes each payment:

• • Principal & Interest: Amount reducing your loan balance
• • Property Tax: Portion allocated to annual property taxes
• • Insurance: Homeowner's insurance portion
• • PMI: Private Mortgage Insurance (if applicable)
• • Extra Payment: Additional amount reducing principal faster

The schedule shows the first 12 payments in detail:

• • Period: Payment number in the loan term
• • Payment: Total amount paid that period
• • Principal: Portion reducing loan balance
• • Interest: Interest charged that period
• • Balance: Remaining loan balance after payment

Early in the loan, most of each payment goes to interest. As the loan progresses, more goes to principal reduction.

• • Include realistic estimates for property taxes and insurance
• • Factor in PMI if your down payment is less than 20%
• • Compare 15-year vs 30-year terms to see long-term savings
• • Consider how extra payments could shorten your loan term
• • Use the comparison feature to evaluate different interest rates

• • Calculate break-even point for closing costs
• • Compare current loan vs refinance options
• • Factor in all closing costs and fees
• • Consider how long you'll stay in the home
• • Evaluate different rate and term combinations

Many lenders collect taxes and insurance as part of your monthly payment and hold them in escrow. The calculator includes these to show your true monthly housing cost.

Extra payments go directly toward principal reduction, which means less interest over time and potentially early loan payoff. Even small extra payments can significantly reduce total interest paid.

The interest rate is the base rate for borrowing money, while APR (Annual Percentage Rate) includes the interest rate plus other loan costs like origination fees, making it a more complete picture of the loan's true cost.

Bi-weekly payments result in 26 half-payments per year (equivalent to 13 full monthly payments), which can reduce your loan term by several years and save thousands in interest.

Interest-only loans are best for borrowers who expect significant income increases, plan to sell before the interest-only period ends, or want to maximize cash flow for other investments. They're generally not recommended for first-time homebuyers due to the payment shock when principal payments begin.