0% Loan Calculator

Calculate payments on a 0% loan.

What are 0% loans?

They allow borrowers to borrow money for a certain period without paying interest.

What are other names for 0% loans?

• interest-free loan

• no-interest loan

Are 0% loans worth it?

They can be, especially if you have the funds to pay the loan in full.

What are the benefits of using a 0% loan?

Not having to immediately pay, and storing those funds in an interest earning account.

What are cons about 0% loans?

Not having to make regular payments can make a borrower forget about the loan (especially after a year). Some borrowers like to regularly pay a small amount (like $20 a month) to remember it's there. Other borrowers may set a reminder when the loan is due.

Are payments required on 0% loans?

Some loans require regular payments while others do not.

Why do 0% loans have a balloon payment at the end?

Some 0% loans offer a small monthly payment to entice borrowers, and then require the full payment before the 0% deal ends. It's a good practice to read the fine print to understand the specific terms.

How do companies benefit from 0% loans?

• make products/services more affordable

• increased sales

• future cash flow

• increased brand loyalty

• competitive advantage

• marketing opportunity

• potential to quickly spread by word-of-mouth and/or digitally

• potentially reduce defaults

When to avoid 0% loans?

• if it's offered by a company you do not regularly use or plan to use

• if it's offered by a company you do not trust