Loan / Mortgage Calculator
Calculate your monthly payment, total interest, and the cost of a loan.
(€/$)
%
years
Monthly Payment
(€/$)673.57
Total Interest Paid
(€/$)92,484.13
Total Loan Cost
(€/$)242,484.13
Understanding Your Loan
Taking out a loan is a significant financial decision, whether it's to buy a house, a car, or finance a personal project. This calculator helps you break down the numbers so you can understand exactly how much you'll pay each month, the total accumulated interest, and the final cost of your debt.
Key Loan Concepts
- Loan Amount: This is the total amount of money you are borrowing.
- Annual Interest Rate (%): This is the cost of the loan expressed as an annual percentage. A lower interest rate means a cheaper loan.
- Loan Term (Years): This is the time you have to repay the loan. A longer term reduces the monthly payment but increases the total interest you'll pay.
How is the monthly payment calculated?
We use the <strong>French amortization system</strong>, the most common for mortgages and consumer loans. This method calculates a fixed payment that consists of a portion of principal and a portion of interest. At the beginning of the loan, most of your payment goes toward paying interest, but as time goes on, this proportion reverses, and you pay more principal.
Interpreting the Results
- Monthly Payment: This is the fixed amount you will pay each month. It helps you know if the loan fits your budget.
- Total Interest Paid: This is the real cost of the money you've borrowed. A longer term or a higher interest rate will increase this figure.
- Total Loan Cost: This is the sum of the original amount plus all the interest. It represents all the money you will have paid by the end of the term.