How to Use the Finance Calculator

A finance calculator is an online tool that instantly works out your monthly loan payment, total interest, and overall cost based on the loan amount, interest rate, and term.

1 — Enter the Loan Amount

Type the principal (the amount you plan to borrow) into “Loan Amount”.
Example: 25 000

2 — Enter the Annual Interest Rate

Key in the nominal yearly rate (APR) your lender quotes in “Annual Interest Rate %”.
Example: 5.5

3 — Enter the Loan Term

Fill in “Loan Term (years)” with the length of the repayment period.
Example: 5

4 — Click “Calculate Payment”

Press the blue button. The calculator runs the amortisation formula and shows three figures:

Output	What it means	Why it matters
Monthly Payment	Fixed amount you’ll pay every month	Helps you budget
Total Interest Paid	Sum of all interest over the loan’s life	Reveals cost of borrowing
Total Cost of Loan	Principal + interest	Shows the real price of the loan

5 — Review & Compare

Change any input to see how extra payments, shorter terms, or lower rates cut interest costs. Use the results to negotiate with lenders or decide whether refinancing is worthwhile.

---

FAQ – Finance Calculator

Q1: What formula does the calculator use?
It applies the standard loan amortisation formula:
M = P·r / (1 – (1 + r)^–n) where M = monthly payment, P = principal, r = monthly rate, n = total months.

Q2: Does it support bi‑weekly or quarterly payments?
This version assumes monthly repayments. Clone the code and adjust the compounding period if you need a different schedule.

Q3: Are fees or insurance included?
No. Add them to the principal or modify the JavaScript to include extra monthly costs.

Q4: Why is my lender’s figure slightly different?
Banks may use daily interest, add origination fees, or round payments differently. Use the calculator for quick comparisons, then confirm with your lender’s disclosure.