Loan Details
About Loan Calculations
Calculate monthly loan payments, total interest costs, and amortization schedules for mortgages, auto loans, and personal loans. Our calculator uses standard loan formulas to provide accurate payment estimates.
Loan Calculator Applications
- Mortgage payment calculations
- Auto loan affordability analysis
- Personal loan comparisons
- Refinancing decision support
Frequently Asked Questions
How is monthly loan payment calculated?
Monthly payment uses the formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is principal, r is monthly interest rate, and n is number of payments. This ensures the loan is fully paid off over the term.
What factors affect loan interest rates?
Interest rates depend on credit score, loan term, down payment, debt-to-income ratio, loan type, and market conditions. Better credit scores and larger down payments typically result in lower rates.
Should I choose a shorter or longer loan term?
Shorter terms have higher monthly payments but lower total interest. Longer terms have lower monthly payments but higher total cost. Choose based on your budget and financial goals.
What is an amortization schedule?
An amortization schedule shows how each payment is split between principal and interest over the loan term. Early payments are mostly interest, while later payments are mostly principal.
How do extra payments affect my loan?
Extra payments toward principal reduce total interest and shorten the loan term. Even small additional payments can save thousands in interest over the life of a mortgage.
What's the difference between fixed and variable rates?
Fixed rates stay constant throughout the loan term, providing predictable payments. Variable rates can change based on market conditions, potentially saving money when rates fall but risking higher payments when rates rise.