Payment Calculator

When taking out a loan, whether for a car, home, or personal use, the monthly payment is often the first number borrowers look at. However, focusing solely on the monthly amount can be misleading.

The Trade-off: Term vs. Interest

Extending your loan term (e.g., from 3 years to 5 years) will lower your monthly payment, but it significantly increases the total interest you pay over the life of the loan.

• Short Term: Higher monthly payments, but you pay less interest and get out of debt faster.
• Long Term: Lower monthly payments, but you pay much more in total interest.

How Extra Payments Help

Most fixed-rate loans allow for prepayment without penalty. Adding just $50 or $100 to your principal payment each month can shorten your loan term by months or even years, saving you a fortune in interest.