How the payment is calculated
The monthly payment uses the standard amortizing-loan formula: each payment covers the interest accrued that month plus a slice of the principal, so the balance reaches zero exactly at the end of the term. Lowering the rate or shortening the term cuts the total interest you pay, so try a few combinations to see the effect.
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Frequently asked questions
What loans does this work for?
Any fixed-rate amortizing loan — personal loans, car loans and mortgages all use the same monthly payment formula.
Does it include taxes or fees?
No. It calculates principal and interest only. Property tax, insurance and fees are not included.
Is a 0% rate supported?
Yes. At 0% the payment is simply the amount divided by the number of months.
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