This monthly payment calculator estimates the value of your regular loan payment together with details such as total interest paid and the debt free date. There is in depth information about the loan types below the form.

Amount borrowed: *
Loan term: *
Interest rate: *
Payment frequency: *
Start date: *
Generate payment plan:

## How does this monthly payment calculator work?

This is a handy and flexible application that can help figuring out the level of monthly payments in case of any loan no matter of its type, such as:

• Personal loans taken without any warranty;
• Mortgage or home loans;
• Car loans;
• Business loans or any similar product.

It assumes a fixed term to repay and a constant interest rate while the details that should be filled in are:

- Amount borrowed;

- Term negotiated with the lender to payout the debt.

- Annual interest rate which is fixed.

- Payment frequency which is default settled to monthly but whenever the case can be changed from the drop down list.

- Start date which is the assumed date to borrow the money which is the same with the start of the repayment moment;

- Payment plan option.

This loan calculator has an algorithm that applies the compound interest formula as it is detailed below. Please note the expression presented below is valid only in case of monthly frequencies, while in case of other options the denominator from the “r” fraction varies:

Regular payment = Principal*[(1+((r/12)/100))^(12*n)]

Where: “r” is the interest rate  and “n”  is the term in years.

The plan that is displayed consists in the following information:

- Regular payment value;

- Total paid (principal + interest);

- Total interest paid;

- Term;

-  Interest rate;

- Payoff date.

- Payment plan (if requested) – the table can be viewed by simply clicking the blue button.

## Example of a calculation

In case of a loan of \$50,000 with a fixed annual interest rate of 2.5%, for a term of 5 years it will display the following numbers:

Payment details:
Monthly payment: \$887.37
Loan amount borrowed: \$50,000.00
Total paid: \$53,242.08
Total interest paid: \$3,242.08
Term: 60 months
Annual interest rate: 2.50 %
Payment frequency: Monthly
Estimated payoff date: December, 2019

## Few tips when establishing what payment plan to choose...

• Don’t overestimate your affordability when establishing the term to repay as it will impact the value you should be able pay on a monthly basis;
• Estimate in a realistic manner the optimal amount you should borrow depending on the loan type and borrow exactly the value you need;
• Simulate different payment scenarios with this monthly payment calculator to discover the optimal term and payment level in such way your life standard not to be affected;
• Simulate and compare as many offers as you can in order to get the right one;
• Check for any hidden costs, fees or charges associated with the loan;
• Double check the information you gather on your own from the market with the information you may get from a personal financial advisor.
• Check the offers that have the lowest rates as this way your overall payment level will be smaller;
• Take account of the impact of a potential increase in the interest rates within the time frame you decide to repay;
• Choose the financial product that best suits your needs. For instance don’t take personal loans to finance long term debts, because usually they came up with higher interest rates.

04 Jan, 2015