The model behind this illustration
Interest = loan principal × annual simple interest rate × months ÷ 12. Monthly interest = principal × rate ÷ 12. Entered fees are assumed deducted at closing. Net advance = principal − fees. Principal remains due at maturity, assuming every interest payment is made.
What this tool does not calculate
It does not model compounding, amortization, interest reserves, unpaid interest, staged construction advances, penalties, taxes, or legal charges unless you include them in entered upfront fees. A real commitment may use a different calculation method. Negative net proceeds are displayed and flagged.