FAQ
How is the monthly payment calculated?
Using the amortized loan formula M = P * r / (1 - (1 + r)^(-n)), where P is principal, r is monthly rate (APR/12), and n is number of payments.
Does this support lump-sum or extra payments?
Not supported in this version. To add, generate an amortization schedule and apply extra payments in the iteration.
Is the APR nominal or effective? How is compounding handled?
This tool assumes a nominal APR and uses a monthly rate r = APR/12. If your lender quotes an effective APR that embeds compounding or fees, approximate by using the per‑period rate and adjusting the number of periods.
Can I change the payment frequency (biweekly, weekly)?
Not built‑in. Convert APR to a per‑period rate (e.g., biweekly APR/26) and set n accordingly, or create an amortization schedule and sum payments at your desired cadence.