Overview
The Loan Calculator helps users understand the true cost of borrowing money. By entering a loan amount, annual interest rate, and repayment period, users receive a complete breakdown of monthly payments, total interest paid, and total repayment amount — all visualized with a clear chart.
How to Use
Enter the principal loan amount, the annual interest rate as a percentage, and the loan term in months or years. Click “Calculate” to see your estimated monthly payment, total interest, and total cost. The pie chart visually shows the ratio of principal to interest, helping you understand where your money goes.
Background & Context
This calculator uses the standard amortization formula: M = P[r(1+r)ⁿ]/[(1+r)ⁿ−1], where M is monthly payment, P is principal, r is monthly interest rate, and n is number of payments. Even a small difference in interest rate can significantly change total costs — a 1% rate reduction on a $300,000 mortgage over 30 years saves over $60,000.
