About Loan Calculator
Loan calculator computes mortgage/auto loan monthly payment, total interest, repayment schedule online. Supports equal payment/equal principal, early payment simulation. Essential for home/car purchase, loan comparison, financial planning.
How to Use
- Enter loan amount/annual rate/term
- Choose repayment method (equal payment/principal)
- View monthly payment and total interest
- Simulate early payment to save interest
Frequently Asked Questions
- Equal payment vs equal principal difference?
- Equal payment: fixed monthly payment, early periods more interest less principal. Equal principal: fixed monthly principal, decreasing payments, less total interest but higher early pressure. Stable income → equal payment; high income → equal principal saves interest.
- Is early repayment worthwhile?
- Depends on loan rate vs investment return. If loan rate 5% and you can find 6%+ stable investment, not prepaying is better. But if mortgage rate >6% or no better investment, early repayment saves interest.
- Why is 30-year mortgage interest greater than principal?
- Long-term loan interest compounds hugely. $1M loan, 5% rate, 30 years = ~$930K total interest. Shorter term or early repayment drastically reduces interest.