### Refundability: Anticipating the calculation of monthly payments

To avoid bad surprises and move towards good credit without losing a minute, do not be afraid to anticipate. Although the repayment may seem low on a monthly basis, do not rely too much on time to make a large loan go unnoticed.

Overall, it is strongly discouraged to repay more than 33% of his income every month. A single individual who accumulates a monthly net income of 1400 € should not, for example, repay more than 462 € per month. This monthly payment will, of course, depend on the constraints of the borrower, the amount of any rent or repayment of a mortgage. Pensions, pensions and other income will also have to be taken into account.

From this very personal calculation, the borrower can get down to business: credit simulation!

## How to calculate monthly payments?

Calculate the actual monthly payments of a credit-induced to know its total amount, namely the amount borrowed added to the total amount of interest (APR).

This interest rate is in the form of a percentage and has an annual value. It encompasses the various costs of the credit institution.

To know its average monthly payments starting from an annual rate, it is necessary to start by calculating the total amount of the credit. For example, for a credit of € 10,000 subscribed for over 48 months, the annual rate of which is fixed at 3.50%, the following simplified calculation should be carried out:

10,000 x 3.50% = 350 € annually. The credit is spread over 4 years (48 months), it will multiply 350 € by 4 to get the total cost of interest or 1400 €.

The monthly repayment will, therefore, include these interests + the amount borrowed divided by the number of months, ie 11 400/48 = 237,50 €. This figure corresponds to an average and simplified monthly payment. The true calculation is more complex and takes into account other criteria.

### Simulation of monthly payments: online calculation forms

Even simpler than the manual and approximate calculation of your monthly payments, the online simulation via an integrated calculator is the ideal alternative to know your monthly repayments even more precisely.

Proposed by the credit institutions, it takes into account all the calculations and is really close to the actual amount. After comparing online the best consumer credit offers and made your choice, a small simulation is required.