Question 1

How do you calculate monthly loan payments?

Accepted Answer

The monthly payment (M) is calculated using the formula: M = P [i(1 + i)^n] / [(1 + i)^n – 1], where P is the principal loan amount, i is the monthly interest rate, and n is the number of months.

Question 2

What is an amortization schedule?

Accepted Answer

An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.

Question 3

Does this loan calculator work for mortgages?

Accepted Answer

Yes, our loan calculator is versatile and can be used to estimate monthly payments for mortgages, auto loans, personal loans, and other fixed-rate installment loans. Simply input your total loan amount, interest rate, and loan term.

Loan Calculator

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