Calculate your estimated monthly payments and total interest for a garage construction loan.
Loan Payment Summary
Estimated Monthly Payment: $0.00
Total Interest Paid: $0.00
Understanding Garage Loans and Your Payment Calculation
A garage loan is a type of unsecured or secured personal loan specifically used for the construction or renovation of a detached or attached garage. These loans can help homeowners finance projects ranging from a simple single-car structure to a multi-bay workshop or storage facility. Understanding how your loan payments are calculated is crucial for budgeting and financial planning.
How Your Monthly Payment is Calculated
The monthly payment for a garage loan is typically calculated using the standard annuity formula, which accounts for the principal loan amount, the annual interest rate, and the loan term. The formula used is:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = Your total monthly mortgage payment
P = The principal loan amount (the total amount you borrow)
i = Your monthly interest rate (annual interest rate divided by 12)
n = The total number of payments over the loan's lifetime (loan term in years multiplied by 12)
Example Calculation:
Let's say you're taking out a garage loan with the following terms:
This calculation results in an estimated monthly payment (M) of approximately $435.88.
Calculating Total Interest Paid
The total interest paid over the life of the loan is calculated by taking your total monthly payment, multiplying it by the total number of payments, and then subtracting the original principal loan amount:
Total Interest = (M * n) - P
Using the example above:
Total Paid: $435.88 * 180 = $78,458.40
Total Interest: $78,458.40 – $50,000 = $28,458.40
Factors Affecting Your Garage Loan
Credit Score: A higher credit score generally leads to lower interest rates.
Loan Type: Secured loans (where the garage or property serves as collateral) might offer better rates than unsecured loans.
Loan Term: Longer loan terms result in lower monthly payments but higher total interest paid over time.
Interest Rate Type: Fixed rates offer predictable payments, while variable rates can fluctuate.
This calculator provides an estimate based on the standard loan amortization formula. Your actual loan terms may vary based on lender policies and your specific financial situation.
function calculateLoan() {
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var interestRate = parseFloat(document.getElementById("interestRate").value);
var loanTerm = parseFloat(document.getElementById("loanTerm").value);
var monthlyPaymentDisplay = document.getElementById("monthlyPayment");
var totalInterestDisplay = document.getElementById("totalInterest");
// Clear previous results if inputs are invalid
monthlyPaymentDisplay.textContent = "$0.00";
totalInterestDisplay.textContent = "$0.00";
if (isNaN(loanAmount) || loanAmount <= 0) {
alert("Please enter a valid loan amount.");
return;
}
if (isNaN(interestRate) || interestRate <= 0) {
alert("Please enter a valid annual interest rate.");
return;
}
if (isNaN(loanTerm) || loanTerm 0) {
monthlyPayment = loanAmount * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
} else {
// Handle zero interest rate scenario
monthlyPayment = loanAmount / numberOfPayments;
}
// Calculate total interest paid
var totalInterest = (monthlyPayment * numberOfPayments) – loanAmount;
// Display the results, formatted to two decimal places
monthlyPaymentDisplay.textContent = "$" + monthlyPayment.toFixed(2);
totalInterestDisplay.textContent = "$" + totalInterest.toFixed(2);
}