Loans, debt and financing

The calculator models entered loan, debt, mortgage, affordability, vehicle-finance and rate scenarios. It explains amortisation mechanics; it does not decide whether a loan or repayment strategy is suitable for a person.

Public paths include a fixed-rate loan, extra payments, rate solving and financing cost; debt payoff, target date, multiple debts and consolidation; mortgage, refinance and affordability; and vehicle loan and offer comparison. The scope deliberately excludes leasing and balloon-payment products.

A standard loan uses a fixed nominal annual rate divided into monthly interest and principal components. Extra payments reduce the balance after the scheduled payment under the implemented schedule. The debt paths use entered balances, rates and minimum payments rather than importing lender data.

For multiple debts, avalanche orders remaining discretionary repayment by the highest annual rate; snowball orders by the smallest remaining balance. These are distinct algorithms, not labels for the same order. Consolidation is a comparison scenario using the entered terms.

The €10,000 example separates the first month’s interest from principal and shows the tested effect of an additional €50 rather than treating the payment as all principal.

€10,000 at 6% for 24 months: payment €443.21; first interest €50.00, first principal repayment €393.21 and balance €9,606.79. With €50 extra monthly, payoff is month 22 rather than month 24.

The regular loan model uses fixed nominal monthly calculations. It does not derive daily interest, variable rates, APR, insurance or contractual fees unless a path explicitly asks for an entered amount.

No credit decision, contract interpretation, lender offer, affordability assessment beyond the entered formula or legal advice is supplied. A calculation is not credit or debt advice.