Loan Calculator
Estimate your monthly payments for any type of loan.
Monthly Payment
$501.23
How Loan Payments Are Calculated
This calculator determines your monthly loan payment using a standard amortization formula. This formula accounts for the loan amount (principal), the interest rate, and the loan term to ensure the loan is fully paid off by the end of its term.
Key Loan Components:
- Loan Amount (Principal): The total amount of money you are borrowing.
- Interest Rate: The percentage the lender charges you for borrowing the money, expressed annually.
- Loan Term: The period of time over which you agree to repay the loan. A longer term means lower monthly payments but more total interest paid.
Frequently Asked Questions (FAQ)
What can I use this loan calculator for?
This is a versatile tool suitable for most fixed-rate installment loans, including auto loans, personal loans, or student loans. It is not designed for interest-only loans or loans with variable interest rates.
How can I lower my monthly payment?
There are three main ways to lower your monthly payment: 1) Borrow a smaller amount, 2) Find a loan with a lower interest rate by improving your credit score or shopping around, or 3) Choose a longer loan term. Remember that a longer term will increase the total amount of interest you pay over the life of the loan.