Understanding Interest Rates

Interest rates play a crucial role in both borrowing and saving. When you take out a loan, the interest rate determines how much extra you'll pay back. When you save or invest, it determines how much your money will grow over time.

How Our Calculator Works

Our calculator uses standard financial formulas to project your loan payments or investment growth. For loans, we calculate monthly payments using the amortization formula. For savings, we compound interest monthly to show your potential growth.

Tips for Better Rates

• For loans: Improve your credit score, shop around with different lenders, and consider shorter loan terms for lower rates.
• For savings: Look for high-yield accounts, consider CDs for fixed terms, and explore investment options for long-term growth.