Definitions
Loan amount: Total dollar amount of your loan or line of credit.
Interest rate (APR): The annual percentage rate for this loan or line of credit.
Term in months: Number of months for this loan or line of credit.
Federal tax rate: The marginal federal tax rate you expect to pay.
State tax rate: The marginal state tax rate you expect to pay.
Fixed loan term: Traditional amortization produces a fixed monthly payment. The monthly payment calculated will leave a zero balance at the end of the loan's term.
2%, 1.5% or 1% of balance: Your minimum payment is calculated as a percentage of the outstanding principal balance. Your minimum payment will change each month, and if you only make the minimum payment your balance will not be zero at the end of your loan's term.
100% of interest owed: For lines paying interest owed, your payment is 100% of the interest accrued during the month but no principal. Your payment may not be fixed if your interest rate or principal balance changes.
Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regard to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
