See the monthly payment on a home loan, plus total interest and total cost over the term.
| Monthly payment | – |
| Total interest | – |
| Total cost | – |
Use this when you are shopping for a mortgage or comparing a 15-year vs 30-year term. It is a level monthly payment with no extra fees, taxes, or insurance. Extra principal payments and ARM resets are not modelled.
The annual rate is split into 12, and the payment is sized so the loan is gone at the end: monthly = P × r × (1 + r)^n / ((1 + r)^n − 1), where r is the monthly rate and n is months. If the rate is zero, the payment is principal ÷ months. Total cost is payment × months; interest is that minus the amount you borrowed. Type 6.5 for 6.5%.
Loan amount: How much you are borrowing, not the house price.
Annual rate (%): The yearly interest rate as a percent, e.g. 6.5 for 6.5%.
Years: How many years you will take to pay it off, usually 15 or 30.
Monthly payment: The level monthly instalment.
Total interest: What you pay on top of the principal.
Total cost: Principal plus interest over the full term.
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