How to Use a Loan Calculator for Payments & Interest

To calculate loan payments, you can use our loan calculator tool which computes monthly payments based on loan amount, interest rate, and term. The formula often used is M = P[r(1 + r)^n] / [(1 + r)^n – 1], where M is your total monthly mortgage payment, P is the principal loan amount, r is the monthly interest rate, and n is the number of payments.