The Money Smart Loan Calculator helps you assess your loan payments and total cost, making it easier to plan and manage your finances.

Loan Formula

Monthly Payment = Loan Amount × Rate / (1 – (1 + Rate)^(-Term))
Total Loan Cost = Monthly Payment × Term

Example Calculation

$5,000 loan, 5% annual interest, 5 years → $94.38 monthly payment, $5,662 total cost.

Why It Matters

By using this calculator, you can find the best loan options and manage your financial commitments more effectively.

Smart Strategy

Choose a loan with a favorable interest rate to reduce your total loan cost over time.

FAQs

What is the best loan term? Shorter terms have higher monthly payments but lower overall interest costs.

How does the interest rate affect my loan? A lower interest rate reduces your monthly payments and total loan cost.

Can I pay off my loan early? Yes, many loans allow for early repayment without penalties—check with your lender.

Money Smart Loan Calculator