Instantly calculate your monthly loan or mortgage payment. Supports standard amortizing loans, interest-only, bullet repayment, and extra payments to see how much faster you can pay off debt and how much interest you'll save.
This tool uses standard financial formulas to give accurate results. Here's a breakdown:
Monthly payment formula (PMT):
PMT = P × (r × (1 + r)^n) / ((1 + r)^n - 1)
Where: P = principal, r = monthly interest rate, n = total months
Example: $200,000 at 6.5% for 30 years → ~$1,264/month
Monthly payment = principal × monthly rate
At end of term: pay full principal in one lump sum.
Extra payments reduce principal early → lowers final balloon payment.
No (or minimal) monthly principal payments.
Pay interest monthly + entire principal at maturity.
Extra payments always go toward principal, shortening term and reducing total interest in amortizing & interest-only modes.
| Type | Monthly Payment | Total Interest | Best For | Risk |
|---|---|---|---|---|
| Amortizing | Fixed & predictable | Moderate | Home buyers, long-term stability | None major |
| Interest-Only | Lower initially | Higher overall | Investors, short ownership | Large balloon payment |
| Bullet | Very low / zero | Highest | Short-term bridge loans | Refinancing risk |
Amortizing loans pay down principal + interest each month. Interest-only loans only cover interest — principal is due at the end (balloon payment).
On a $200k, 6.5%, 30-year mortgage, $200 extra/month can save ~$40,000 in interest and shorten term by ~6 years. Results vary — use the calculator!
Yes — uses standard PMT formula used by banks. Does not include taxes, insurance, PMI or fees (add those to effective rate if needed).
Usually yes — but check for prepayment penalties. Extra payments here reduce final balloon amount.
Lower monthly outflow — good for flips, investments, or if expecting large income later. Higher risk if property value drops or refinancing fails.