Loan Calculator

Explanation

This loan simulator is designed to help you understand the monthly payments and total cost of your credit. Whether for a mortgage, car loan, or personal loan, it is crucial to know the impact of the interest rate and duration on your finances. ### Understanding the Results - **Monthly Payment**: This is the amount you will have to pay each month. It includes a portion of the repaid capital and a portion of interest. - **Total Interest**: This is the real cost of your credit. It is what you pay to the bank on top of the borrowed amount. - **Total Cost**: Borrowed Amount + Total Interest. ### Factors Influencing Cost 1. **The Rate (APR)**: The higher it is, the more expensive the credit. A small rate difference can represent thousands of dollars over 20 years. 2. **The Duration**: Extending the duration lowers the monthly payment but significantly increases the total interest cost. 3. **The Amount**: Obviously, the more you borrow, the more you repay. ### Tip Try to reduce the duration of your loan to the maximum of your repayment capacity to minimize the total interest cost.

Examples

• For $200,000 over 20 years at 3.5%: Monthly payment of $1,160, Total interest cost of $78,000.
• For $15,000 (Car) over 5 years at 5%: Monthly payment of $283, Total interest cost of $1,980.

FAQ