Smart calculations for smarter financial decisions
| # | Principal | Interest | Payment | Balance |
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Monthly payment is calculated using the loan amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is principal, r is monthly interest rate, and n is number of payments.
Fixed Payment keeps your monthly payment constant throughout the loan. Fixed Principal pays the same principal each month plus decreasing interest, resulting in declining payments over time.
Compound interest is interest calculated on both the initial principal and accumulated interest. More frequent compounding (daily vs monthly) results in higher returns.
Yes, our calculator uses standard financial formulas. However, actual loan terms may vary by lender, and this should be used for estimation purposes only.