Loan Calculator
Understanding Loans
A loan is a sum of money borrowed that is expected to be paid back with interest. The monthly payment depends on the principal, interest rate, and term.
Key Terms
- Principal: The amount borrowed
- Interest: Cost of borrowing
- Term: Duration of the loan
- Amortization: Gradual repayment schedule
💡 Tips
- Extra payments go directly to principal
- Shorter terms save significantly on interest
- Compare APR, not just interest rates
- Consider refinancing when rates drop