Loan Simulator
Calculate your monthly payment, total interest and amortization schedule accurately
Loan Details
Fill out the form to see results
What is a Loan Simulator?
A loan simulator is a financial tool that allows you to accurately calculate how much you'll pay monthly for a loan, how much you'll pay in total, and how much of that total corresponds to interest. It uses the French amortization formula, the most common system for mortgages, personal loans, and consumer loans.
This calculator helps you make informed financial decisions by showing you the true cost of a loan before applying for it. Additionally, it generates a detailed amortization schedule that shows how each payment is distributed between principal and interest over time.
How to Use this Simulator
Enter the loan amount you need to request.
Enter the annual interest rate offered by the bank (usually between 3% and 15%).
Define the loan term in months (for example, 12 months = 1 year, 360 months = 30 years).
Click 'Calculate Loan' to see your monthly payment, total to pay, and complete amortization schedule.
What is the Loan Simulator For?
Mortgage Loans
Calculate the monthly payment of your mortgage before buying a home. Compare different terms and interest rates to find the best option.
Vehicle Financing
Simulate the loan to buy a car. Discover how much you'll pay monthly and if the financing fits your budget.
Business Loans
Plan your business financing by calculating payments and the total cost of the loan for business investment.
Personal Loans
Evaluate different personal loan offers by comparing monthly payments and total costs to choose the most convenient one.
Frequently Asked Questions
What is a fixed monthly payment?
A fixed monthly payment is the constant payment you make each month throughout the life of the loan. Although the payment is always the same, the distribution between principal and interest varies: at first you pay more interest and less principal; over time, you pay more principal and less interest.
How is the monthly payment calculated?
The French amortization formula is used: Payment = P × [r / (1 - (1 + r)^-n)], where P is the borrowed capital, r is the monthly interest rate (annual/12), and n is the number of months of the loan. This formula ensures that the payment is constant throughout the term.
What is an amortization schedule?
An amortization schedule is a detailed month-by-month breakdown that shows how each payment is distributed between principal and interest, and how much balance remains after each payment. It's useful for understanding the evolution of the loan and planning possible early repayments.
Is a longer or shorter term better?
A longer term reduces the monthly payment, making it more affordable, but significantly increases the total interest paid. A shorter term has higher payments but you'll pay much less in interest. The ideal depends on your monthly payment capacity and your goal to minimize the total cost.