Loan Calculator
The Loan Calculator estimates your monthly payment, total amount repaid and total interest for a fixed-rate loan or mortgage. Enter the amount, annual interest rate and term - it uses the standard amortization formula and breaks the cost down clearly so you can compare offers and see what borrowing really costs.
Frequently Asked Questions
Quick answers to common questions
Q:What is the monthly payment formula?
It uses the standard amortization formula: payment = (P × r) / (1 − (1 + r)−n), where P is the principal, r the monthly interest rate and n the number of monthly payments.
Q:What does 'total interest' mean?
It's the total amount you pay beyond the borrowed principal: total paid minus the loan amount. Comparing this across offers shows the true cost of borrowing.
Q:Does a longer term mean a smaller payment?
Yes, spreading a loan over more years lowers the monthly payment, but it also increases the total interest paid because interest accrues for longer.