1. What is the MCB Loan Payment Calculator?

The MCB-style personal loan calculator estimates monthly payments for fixed-rate loans using the standard amortization formula. It helps borrowers understand their repayment obligations before committing to a loan.

2. How Does the Calculator Work?

The calculator uses the loan payment formula:

Where:

• \( P \) — Principal loan amount (MUR)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Number of monthly payments
• \( PMT \) — Monthly payment amount (MUR)

Explanation: The formula calculates the fixed payment required each month to pay off the loan over the specified term, including both principal and interest.

3. Importance of Loan Payment Calculation

Details: Understanding your monthly payment helps with budgeting and ensures the loan is affordable. It also allows comparison between different loan offers.

4. Using the Calculator

Tips: Enter the principal amount in MUR, annual interest rate as a percentage (not decimal), and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this include any fees or insurance?
A: No, this calculates only the principal and interest payment. Additional fees or insurance premiums would increase your total payment.

Q2: What's the difference between reducing balance and flat rate?
A: This calculator uses reducing balance method where interest is calculated on the outstanding balance. Flat rate calculates interest on the original principal throughout.

Q3: How does loan term affect payments?
A: Longer terms reduce monthly payments but increase total interest paid. Shorter terms have higher payments but lower total cost.

Q4: Can I calculate partial month payments?
A: No, this calculator assumes whole month periods. Partial month interest would require different calculations.

Q5: Is this specific to MCB Philippines?
A: While styled after MCB calculators, this uses standard loan formulas applicable to most fixed-rate personal loans.