Payment Calculator
Calculate monthly payments or loan terms for fixed interest loans
Payment Calculator
The Payment Calculator can determine the monthly payment amount or loan term for a fixed interest loan. Use the "Fixed Term" tab to calculate the monthly payment of a fixed-term loan. Use the "Fixed Payments" tab to calculate the time to pay off a loan with a fixed monthly payment.
đŗ Loan Details
đ Monthly Payment Results
Loan Breakdown
đ Amortization Schedule
| Year | Interest | Principal | Ending Balance |
|---|
đ Understanding Loan Payments
Fixed Term vs Fixed Payment
Choose fixed term to determine monthly payments for a specific loan duration, or fixed payment to find out how long it takes to pay off with set monthly amounts.
Interest Rate vs APR
Interest rate is the cost of borrowing money, while APR includes additional fees and costs associated with the loan, providing a more complete picture of total cost.
Payment Strategies
Making extra payments toward principal can significantly reduce total interest paid and shorten the loan term, saving money over the life of the loan.
About Loan Payments
A loan is a contract between a borrower and a lender in which the borrower receives an amount of money (principal) that they are obligated to pay back in the future. Loans can be customized based on various factors, with the term and monthly payment amount being two of the most common deciding factors.
Fixed Term Loans
Mortgages, auto loans, and many other loans use a time limit approach to repayment. For mortgages, choosing between 30-year or 15-year terms can significantly impact your long-term financial goals. Shorter terms typically result in higher monthly payments but lower total interest paid.
Fixed Payment Method
This method helps determine the time required to pay off a loan and is often used to find how fast debt can be repaid. Adding extra money to your monthly payment can significantly accelerate payoff and reduce total interest costs.
Important Considerations
- Interest Rate Type: Fixed rates remain constant, while variable rates can change over time
- Extra Payments: Additional principal payments can save thousands in interest
- Loan Terms: Shorter terms mean higher payments but less total interest
- Total Cost: Consider both monthly payment affordability and total cost over the loan life