This tool uses the standard Amortization formula, which is the most common method used by banks worldwide for mortgages and auto loans.

Because the monthly interest is calculated based on your remaining principal balance. As you pay off the principal in previous months, the balance decreases, leading to lower interest charges.

Absolutely! Just enter the phone price as the loan amount, the annual interest rate (e.g., 30% for consumer financing), and the term length in months to get accurate results.