Comprehensive Calculator Guide
📋Overview
The Loan Calculator helps you understand the monthly payment you will pay for a loan, as well as the total interest and total cost. This tool is essential for anyone planning to take out a mortgage, car loan, or personal loan.
🎯How to Use
- Enter the required loan amount
- Specify the annual interest rate
- Enter the loan term in years
- Click 'Calculate Payment' to see results
🔢Formula Used
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]💡Practical Examples
Example: Mortgage
Loan of 500,000 SAR at 4% interest for 20 years = monthly payment of about 3,030 SAR.
❓Frequently Asked Questions
Q:How can I reduce total interest?
A: You can reduce interest by choosing a shorter loan term or making extra payments on the principal.
Q:What is the difference between fixed and variable interest?
A: Fixed interest remains the same throughout the loan term, while variable interest may change based on market conditions.