This tool estimates fixed monthly payments using the standard amortization formula. It converts annual rate to monthly rate before calculating the payment.

Scope

It is useful for early comparisons of mortgages, auto loans and installment loans. Actual contracts may include fees, rate changes and prepayment rules.

Use of result

The result is an estimate, not financial advice. Confirm with a lender before making a binding decision.

FAQ

Is this an amortized loan?

Yes. It uses a fixed monthly payment model.

Should I enter annual or monthly rate?

Enter annual percentage rate.