About Our Loan Calculator
Our loan calculator is a simple, intuitive tool designed to help borrowers understand and compare different loan options. It takes into account key aspects such as the principal loan amount, interest rate, loan term, and any origination fees to provide a comprehensive view of the loan's cost. This includes your monthly payment, total interest paid over the loan term, the total cost of the loan, and the annual percentage rate (APR).
How to Use the Calculator
To get the most out of our loan calculator, you'll need to accurately enter details about your potential loan. Here's an extended guide to the different fields you'll be asked to fill:
- Loan Amount: This is the primary amount you wish to borrow, excluding any interest and additional fees. It forms the base on which your interest and payments are calculated.
- Interest Rate: This is the annual interest rate for your loan. It's important to remember that if your lender provides a monthly rate, you need to multiply it by 12 to get the annual rate.
- Loan Term: The loan term is the length of time you will take to repay the loan, usually specified in months. It's vital to understand that the length of the loan term will directly affect your monthly payments and total cost of the loan.
- Origination Fee: This represents any initial fees charged by the lender. These fees can substantially affect the total cost of your loan and are factored into the calculation of the APR.
Once you've filled in all the relevant fields, the calculator will promptly generate an amortisation schedule. This schedule gives you a breakdown of each payment into principal and interest, providing a transparent view of your loan's repayment structure over time.
Understanding the Results
The results generated by our loan calculator provide valuable insights into your potential loan. Here's a breakdown of what each component means:
- Monthly Payment: This is the amount you'll be expected to pay each month. It consists of a part of the loan's principal and the interest charged on the loan at that point in time.
- Total Interest Paid: Over the course of your loan term, you will pay interest on the outstanding loan balance. This field shows you the total interest you would pay by the end of the loan term.
- Total Cost of Loan: This is the total amount you would pay by the end of your loan term, including your principal, total interest paid, and any fees.
- APR: The Annual Percentage Rate is a broader measure of the cost of borrowing money, as it reflects not only the interest rate but also the fees associated with the loan. It's a vital tool for comparing different loan offers.
Remember, while our loan calculator provides a solid estimation of your loan terms, the exact figures might slightly vary based on your lender's terms and conditions.