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# Monthly cost of loan calculator

## Alternative name: Loan cost calculator, How much does the loan cost? Mortgage monthly cost calculator

By using this calculator you can find the monthly amount for any loan amount with any length and interest rate. For example, if you have an annuity loan such as a mortgage, car loan or the like, you can enter the loan amount, annual interest rate and repayment period to see the monthly cost.

The calculator does not take into account fixed monthly fees or start-up fees. Therefore, use the effective loan interest rate in the calculator so that the loan amount is as correct as possible.

## Calculator results

Monthly payment: 691

How much can I borrow?

If you do not already have a loan, you know how much you have left over each month. Take this amount as a starting point when calculating how much you can repay each month, but remember that if your loan has a floating interest rate, you should also take this into account in your calculation. A common rule of thumb is to add 5% to the interest rate as a safety margin.

How much can I borrow for a mortgage based on my income?

The main rule is that you can borrow a maximum of five times the annual income and no more than 85% of the home's market value. Others recommend that you should not use more that 36% of your gross monthly income towards a mortgage.

What is a good interest rate?

A good loan interest rate depends on the type of loan you are considering. A car loan usually has two to three times as high an interest rate as a mortgage. A mortgage with a floating interest rate is approximately 1% to 2% above the benchmark interest rate (fed rate / bank rate). There are many comparison services for mortgages as well as for car loans, it is recommended to check these annually to be sure that you have the best loan interest rate.

What is the difference between nominal interest rate and effective interest rate?

Nominal interest rate is the interest rate the lender gives you as a customer before any fixed costs such as monthly fees, start-up fees and the like. After these costs are included, it is called the effective interest rate.