Financial Calculator

It is an amortization system in which every installment has the same value. At the start most of the installment is interest, and over time the share that pays down the principal increases.

A monthly rate is applied each month and an annual rate each year. When you choose 'per year', the calculator converts it to the equivalent monthly rate using compound interest, not a simple division by 12.

No. It calculates only the pure financing using the Price table. Costs such as taxes, insurance and administrative fees vary by institution and are not included.

Yes. It works for any financing with fixed installments, such as personal loans, car loans and mortgages, as long as it uses the Price system.

With the amortisation formula PMT = P × i / (1 − (1 + i)^−n), where P is the financed amount, i the interest rate per period and n the number of instalments. Each payment covers interest first, then principal.

Because interest is charged on the outstanding balance every period. Over a long term the accumulated interest can approach or exceed the original amount, which is why the total cost is shown alongside the instalment.

Yes. A larger down payment reduces the financed amount, so every subsequent interest charge is calculated on a smaller balance. It usually saves more than shortening the term by the same amount.

Enter the rate for the same period as your instalments. If your contract quotes an annual rate and you pay monthly, convert it first, since dividing by twelve slightly understates a compounded rate.