When using a figure for this input, it is important to make the distinction between interest rate and annual percentage rate (APR). Either "Loan Amount" needs to be lower, "Monthly Pay" needs to be higher, or "Interest Rate" needs to be lower. If so, simply adjust one of the three inputs until a viable result is calculated. This means that interest will accrue at such a pace that repayment of the loan at the given "Monthly Pay" cannot keep up. It is possible that a calculation may result in a certain monthly payment that is not enough to repay the principal and interest on a loan. Simply add the extra into the "Monthly Pay" section of the calculator. This calculator can also estimate how early a person who has some extra money at the end of each month can pay off their loan. This method helps determine the time required to pay off a loan and is often used to find how fast the debt on a credit card can be repaid. For additional information about or to do calculations involving mortgages or auto loans, please visit the Mortgage Calculator or Auto Loan Calculator. Car buyers should experiment with the variables to see which term is best accommodated by their budget and situation. Even though many car buyers will be tempted to take the longest option that results in the lowest monthly payment, the shortest term typically results in the lowest total paid for the car (interest + principal). It can also be used when deciding between financing options for a car, which can range from 12 months to 96 months periods. The Payment Calculator can help sort out the fine details of such considerations.
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