How to use it
- Enter Loan amount.
- Enter Annual rate %.
- Enter Term (years).
The formula
M = PĀ·r(1+r)āæ / ((1+r)āæā1)
Worked example
A $40,000 boat loan at 8% over 10 years is about $485/month.
Frequently asked questions
Longer terms available?
Recreational loans can run long, raising total interest.
Down payment?
A larger down payment lowers the loan and payment.
Tips
- A shorter term costs less overall even if the payment is higher.
- Check the APR, not just the rate, to compare fairly.
- Read the fine print for fees and prepayment penalties.
Key terms
- APR
- Yearly cost including fees, as a percentage.
- Term
- How long you repay the loan.
- Collateral
- An asset securing the loan.