Welcome to the Financial Calculator
Sooner or later, all borrowers become repayers, and they have to make arrangements to pay back their loan. This is usually done by making equal monthly payments over a predetermined length of time. Calculating the monthly payment is called amortization . The mathematical formula used includes such variables as the interest rate, present value of the loan when the monthly payment calculation takes place, and the period of time in which the loan is to be repaid to the lender.
Borrowers often wonder how the monthly payments might change with a modification of the interest rate? Usually, when interest rates change, lending institutions will keep the monthly payments constant and adjust the number of months of repayment. However, this practice is not always implemented. We would strongly recommend asking your specific lender how your repayment schedule would be affected should the interest rate be adjusted during the repayment period.
A second area often questioned has to do with voluntary accelerated payments whereby the borrower pays more than the calculated monthly required payment. Normal practice is that an individual can make payments above and beyond the calculated monthly payments without penalty. In fact, if you can possibly increase your monthly payments, your loan will be far less costly down the road.
You can use the following loan calculator to determine your monthly payment for any of the loan programs we have presented to you. You can choose your own "Total Amount of Loan" rather than using the $10,000 amount we used in our examples.