Question 1

How is a monthly payment calculated?

Accepted Answer

The payment uses the amortization formula: P × r / (1 - (1+r)^-n). The calculator handles the math for any loan amount, rate, and term.

Question 2

How can I lower my monthly payment?

Accepted Answer

You can lower your payment by reducing the loan amount, negotiating a lower rate, or extending the term. Note that longer terms increase total interest paid.

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