How the loan calculator works
It uses the standard amortization formula, where each month you pay interest on the remaining balance plus a slice of the principal:
M = P × r ÷ (1 − (1 + r)⁻ⁿ)
- P — the amount you borrow
- r — the monthly interest rate (annual rate ÷ 12)
- n — the number of monthly payments (years × 12)
Example
Borrow $10,000 at 7% over 3 years and you'd pay about $308.77 a month — roughly $1,116 in total interest.