How to use it
- Enter Balance.
- Enter Annual rate %.
- Enter Term (years).
The formula
M = P·r(1+r)ⁿ / ((1+r)ⁿ−1)
Worked example
A $30,000 balance at 5% over 10 years is about $318/month.
Frequently asked questions
Can I repay early?
Usually yes, with no penalty, which saves interest.
What about income-based plans?
They set payments from income rather than a fixed term.
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.