A Loan Calculator is an essential tool for estimating the cost of a loan. It calculates monthly payments, total payment amounts, and interest payable over the life of the loan.
By entering loan details such as amount, interest rate, and repayment period, you can quickly understand the real cost of borrowing.
The Loan Calculator uses a standard amortization formula to determine monthly payments and total cost over the loan period. It requires the loan amount, interest rate, and term as inputs.
Monthly Payment = [P × r × (1 + r)^n] / [(1 + r)^n − 1]
Where:
Use the formula: Monthly Payment = [P × r × (1 + r)^n] / [(1 + r)^n − 1]
It helps borrowers understand the total cost of borrowing and compare loan options before making decisions.
Yes, this calculator works for personal loans, mortgages, auto loans, and student loans.
No, this calculator only computes principal and interest payments.
It provides accurate estimates, but actual payments may vary due to interest changes or fees.