I have seen people always getting confused with the loan calculation method, especially auto loan (including me, when I bought my first car), just to help you all ... I have created this calculator. Try this and find out how it differs from the other calculators on the internet.
What my calculator is capable of?
1. Calculates monthly payment or apr or term or loan amount based on your input. (any calculator online does this ... not a big deal)
2. Gives you the total amount that a person will pay if he takes a loan i.e., principal (loan amount) + total interest amount.
3. Gives you the amortization table i.e., monthly splits. The amount that goes towards your principal and interest from your monthly payment.
4. Allows you to edit your monthly payment and gives you the amount that you will gain with the change. Many pay their monthly payments exactly, without knowing that even few dollars (or rupees or whatever) increase will change their total interest.
5. Tells you whether refinance will be profitable or not, by changing interest rate or loan term. Gives you the amount that you will save/lose by refinancing.
Formula used for this calculator:
Monthly Payment = (P * R) / (1 - (1 + R)^(-n)) where
P = Loan amount
n = loan term i.e., number of months
R = Annual Percentage Rate/ (12 * 100)
12:number of months/year
100: As rates are in percentage
Feel free to send your comments.