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Loan Calculator

Calculate monthly payments and total interest for your loans.

📋 How to Use

  1. 1 Enter the total loan amount
  2. 2 Enter the annual interest rate
  3. 3 Enter the loan term in months (e.g., 360 for 30 years)

Money-Saving Tips

  • 💰 Even small extra payments can save thousands in interest
  • ⏱️ Shorter loan terms mean higher payments but much less total interest
  • 🔍 Compare rates from multiple lenders before committing

📚 Understanding Loan Payments

This calculator uses the standard amortization formula used by banks worldwide. Each monthly payment includes both principal and interest, with early payments being mostly interest.

🔄 Repayment Methods

  • 1. Equal Payment (Annuity): Same payment each month. This calculator uses this method.
  • 2. Equal Principal: Principal portion is fixed, interest decreases. Total interest is lower but early payments are higher.
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Expert Note

Pro Tip: Paying just one extra payment per year can shorten a 30-year mortgage by 4-5 years.

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Formula

Monthly payment formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is principal, r is monthly rate, and n is number of payments.