| All the fields accept only numbers (integers or decimals but no fractions). Please omit the dollar sign or comma for any dollar amount. For instance, use 76543.21 to represent $76,543.21. |
| 1 Please leave out the percentage sign for Annual Interest Rate. For instance, if the rate is 12.75%, you should put 12.75 in. For credit cards, this rate is much more commonly known as Annual Percentage Rate or APR. If the Down Payment is a percentage (of the Buying Price), please omit the percentage sign as well. |
| 2 Compounding Period describes how frequently the Annual Interest Rate is compounded. For example, if you use this calculator for credit card payments, you may want to choose Daily because virtually all credit card issuers elect to compound your APR daily. |
| 3 You need to provide values for two of the three so that the program can calculate the other. |
| 4 Buying Price includes Down Payment, rendering the effective loan equal to the difference between them. In cases like a credit card loan, you leave the Down Payment zero; then the Buying Price will equal the total balance on the credit card (the amount you owe your credit card company). |
| 5 Payment Amount is the same amount you would pay at a regular interval, which is solely defined by Payment Frequency. The first of such payments is presumed to be made one (1) regular interval from the time of loan origination. For example, if you make monthly payments, it is assumed that you will extend your first payment one month from the time of loan origination. |
| 6 Term of Loan runs from the time of loan origination till when the loan is fully paid off. |
| 7 The optional Down Payment field would automatically evaluate to zero (0) if left blank. |
| One final note: This calculator assumes there are 365¼ days in a year since one in every 4 consecutive calendar years is a leap year (except that a year ending in "00" such as 2000 is a leap year only when divisible by 400). |
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