Loan Simulator
A loan simulator helps you estimate monthly payments, total interest, and the overall cost of a loan before committing to one. By adjusting the principal amount, interest rate, and loan term, you can explore different scenarios and find a repayment plan that fits your budget.
Whether you are considering a mortgage, personal loan, or auto financing, simulating the loan beforehand gives you a clear picture of your financial obligations. Understanding amortization — how each payment is split between principal and interest — empowers you to make smarter borrowing decisions and potentially save thousands over the life of a loan.
How it works
M = P × [r(1+r)^n] / [(1+r)^n – 1], where M is the monthly payment, P is the loan principal, r is the monthly interest rate (annual rate / 12), and n is the total number of monthly payments.
Use cases
- Estimating monthly mortgage payments before buying a home
- Comparing loan offers from different lenders
- Planning a personal loan repayment strategy
- Understanding how extra payments reduce total interest