Loan Calculator
Calculate your estimated monthly loan payment.
What Is the True Cost of Your Loan?
The sticker price of a car or house is only part of the story. The real cost is what you'll pay over the lifetime of the loan, including interest. This calculator breaks down your financial commitment by showing you three key numbers: your fixed monthly payment (EMI), the total interest you'll pay, and the total amount you'll pay back. It's an essential first step before signing any loan agreement.
How to See Your Loan Breakdown
To estimate your monthly payments, you only need three figures:
- Loan Amount ($): The total principal you want to borrow.
- Annual Interest Rate (%): The rate quoted by your lender.
- Loan Term (Years): The duration over which you'll repay the loan (e.g., 5 years for a car, 30 years for a mortgage).
The calculator will immediately display your estimated monthly payment and the total interest cost.
Frequently Asked Questions (FAQ)
Q: How can I reduce my total interest payment?
A: There are three primary ways: secure a lower interest rate, make a larger down payment to reduce the principal, or choose a shorter loan term. A shorter term means higher monthly payments but can save you thousands in interest over the life of the loan. Use the calculator to see the difference.
Q: What is amortization?
A: Amortization is the process of spreading out a loan into a series of fixed payments. In the beginning of the loan, a larger portion of your payment goes toward interest. As you continue to make payments, more of your money goes toward paying down the principal balance.