Need to cover a large expense? A personal loan gives you the ability to pay for life’s bigger costs, like:
Try out our Loan Payment Calculator to find out how long it’ll take you to pay off your loan, and what it’ll cost you to borrow it. All you need to do is enter:
So, how do you calculate monthly payments on a loan? You can use our new calculator! Here’s how:
When you take out a loan, you don’t just pay back the money you borrowed. You also pay interest on that money.
A loan payment calculator allows you to determine the cost of borrowing money.
First, it can help to understand the difference between principal and interest.
Principal is the sum of money you borrow, which you must pay back to your lender.
Interest is what your lender charges you for borrowing money.
Principal + Interest = The total cost of your loan.
To determine that cost, you can use our Loan Payment Calculator. You just need to enter each variable that affects the cost of your loan, including:
How much money do you plan to borrow? With a personal loan, you’ll borrow a fixed amount – that means it won’t change throughout the duration of your loan.
Remember: Whenever possible, avoid borrowing more money than you can afford to pay back.
If you aren’t sure how much you need, or you may need to borrow more money at a later date (which is often the case with home renovations), you may be better suited to a line of credit.
A line of credit is revolving, which means you can borrow money repeatedly up to a set limit, and you only pay interest on what you use (like a credit card).
On the other hand, a loan is a one-time lump sum that you receive. To borrow more money at a later date, you’ll need to apply for another loan.
The loan term is the time it will take to pay off your loan in full. Depending on your unique financial situation, it may take anywhere from 1 year to 10 years.
A shorter loan term means your payments will be bigger – but you’ll also pay less interest.
This is the cost of taking out a loan, paid relative to the amount you borrow. If your loan has a variable rate, it may fluctuate over the course of your loan term.
At Cambrian, we offer among the lowest interest rates in the market. Find out what rate you could get on your loan - contact us today!
How often do you plan to make loan payments? You can choose from different payment schedules to better suit your budget, whether that’s making payments every week or every month.
By making payments more often, you can save money on interest and pay your loan off faster.
Now that you know how to calculate loan payments and interest, you might have questions, like:
That’s what our advisors are here for. Let’s figure out a loan that works for you. Book a meeting today!
We would be happy to discuss your unique situation with you.
Our goal is to make complex topics like this one, simple.
It takes less than 5 minutes to make an appointment or to apply online. It is up to you how you want to meet your advisor - you will have the option to meet your advisor:
