  # Loan Term Calculator Instructions

### Interest Calculations

Interest is calculated using the Compounded Interest Method. This means interest is calculated periodically, e.g. Monthly and added to the balance owed.

### Calculate Monthly Payments

The Monthly Payment Calculator can be used for calculating the amount that would have to be paid, per month from the term, interest rate and amount borrowed values provided.

### Comparison Calculators for Known Terms

The Loan and Mortgage calculators are available for the purpose of calculating year end balances for loans where the monthly payment amount is known (this is optional) and interest is calculated on a monthly basis, every month, on the remaining balance or for loans where the monthly payment amount is known and interest is calculated on a daily basis, e.g. a mortgage or on a monthly basis, e.g. a loan
Payment amounts can be adjusted to show the affect on the loan term length for the analysis of up to three loans.

A year end balance, e.g. +1 Year is the balance after all payments including interest on the loan at that point have been made.
Calculations will only be performed up to the No. of Years entered on the form for a loan and to a maximum of 40 years.
The results here may differ from those of other calculator sites. Monthly interest is calculated at the Annual Interest Rate/12 and Daily Interest is calculated at the Annual Interest Rate/365.25.
Complete at least one set of loan criteria up to a maximum of three (on most calculators).
Enter values for:

• Interest Rate (APR)
• Monthly Payment (optional)
• Starting Balance (This can be the current balance or the original loan amount)
• No. of Years (This can be the original term or number of years left using the current balance as the starting balance)

### Mortgage Comparison with Auto Generated Terms

The values entered on the input form will be adjusted and used in two extra auto-generated calculations. The auto-generated values will be..
Entered Interest Rate.. -1% and +1%
Term Years.. -5 and +5
Starting Balance.. -25000 and +25000
Therefore for a realistic comparison, enter initial figures that will fit the ranges above.

### Results tables

A green cell indicates the loan is paid off within the term and at the interest rate provided. The terms can still be altered when showing green.
A red cell indicates that the loan term or monthly payment (or both) need increasing, to pay the balance off at the given interest rate.

### Link to Disclaimer Page and Site Guidance

Note this disclaimer: all calculated amounts displayed are for guidance only and professional monetary advice should always be sort where necessary. No advice is provided at all, on this site. All calculations are only indicative and based on the values entered.
None of the data entered in the loan tables or shown in the results tables are stored away from the client device.