Calculation Methodology

Loan Payment Calculations

Monthly loan payments are calculated using the standard amortization formula:

M = P × [r(1+r)^n] / [(1+r)^n – 1]

Where M is the monthly payment, P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments.

Compound Interest Calculations

Future value with compound interest is calculated using:

FV = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)]

Where FV is future value, P is initial principal, r is annual interest rate, n is compounding frequency per year, t is time in years, and PMT is periodic contribution.

Debt Payoff Calculations

Debt payoff calculations use iterative monthly calculations where each month's interest is computed on the remaining balance, and the payment is applied to interest first, then principal.

Limitations

These calculators provide estimates for educational purposes. Actual financial outcomes may vary based on factors not included in these calculations, such as fees, variable rates, taxes, and other terms specific to your financial products.