What is the monthly payment on a $200,000 loan at 7% for 30 years?

At 7% annual interest over 30 years (360 months), the monthly payment is approximately $1,330.60. You would pay about $279,016 in interest, for a total of $479,016 paid over the life of the loan.

How does loan term affect my monthly payment?

A shorter term increases the monthly payment but reduces the total interest paid. A longer term lowers the monthly payment but you pay more interest overall. For example, a $20,000 car loan at 6%: 48-month term ≈ $470/month ($2,556 total interest); 72-month term ≈ $331/month ($3,859 total interest).

What is total interest paid?

Total interest is the sum of all interest charges over the entire loan term: total payment minus the original principal. It shows the true cost of borrowing. On a long mortgage, total interest can exceed the original loan amount.

Can I use this for a mortgage, car loan, or personal loan?

Yes - the formula works for any fixed-rate, fixed-term installment loan: mortgages, auto loans, personal loans, student loans. Variable-rate loans require recalculation at each rate change. This calculator assumes monthly compounding and equal payments throughout the term.

Loan Calculator - Toolcroft

How to use the loan calculator

Enter the loan amount (the principal you are borrowing), the annual interest rate as a percentage, and the loan term in years or months. Monthly payment, total interest, and total cost update immediately as you type. Use the years/months toggle to switch term units. A 30-year mortgage and a 360-month mortgage produce identical results.

How monthly payment is calculated

The standard fixed-rate amortization formula is:

M = P × r(1+r)ⁿ / ((1+r)ⁿ − 1)

where M is the monthly payment, P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. When the interest rate is 0%, the formula simplifies to M = P ÷ n.

Each payment covers that month's interest first, with the remainder reducing the principal. Early payments are mostly interest; later payments are mostly principal. The monthly payment amount stays constant throughout the loan term.

Common loan examples

Loan	Amount	Rate	Term	Monthly payment	Total interest
30-yr mortgage	$300,000	7%	30 yr	$1,995.91	$418,527
15-yr mortgage	$300,000	6.5%	15 yr	$2,613.32	$170,397
Auto loan	$35,000	6%	60 mo	$676.55	$5,593
Personal loan	$10,000	10%	36 mo	$322.67	$1,616
Student loan	$30,000	5.5%	10 yr	$325.22	$9,027

Biweekly payments

Instead of making one full monthly payment, pay half your monthly payment every two weeks. Because there are 52 weeks per year, you make 26 half-payments - equivalent to 13 full monthly payments instead of 12. That one extra payment per year goes entirely to principal, which can reduce a 30-year mortgage by 4–5 years and save tens of thousands of dollars in interest.

Confirm with your lender that they accept biweekly payments and apply them as principal reduction - some servicers hold biweekly payments until a full month's payment is accumulated, which eliminates the benefit.

Points and origination fees

The APR (Annual Percentage Rate) is a more complete measure of a loan's cost than the nominal interest rate because it includes origination fees, points, and other lender charges. One discount point = 1% of the loan principal paid upfront to lower the interest rate (typically by 0.25% per point). The APR spreads these costs over the full loan term, making apples-to-apples comparison between loan offers possible. Always compare APRs - not just stated rates - when shopping for a loan.