1. What is Affirm?

Affirm is a financial technology company that offers installment loans to consumers at the point of sale. It allows shoppers to split their purchases into fixed monthly payments with transparent terms.

2. How Does the Calculator Work?

The calculator uses the Affirm payment formula:

Where:

• \( Loan \) — Total loan amount (USD)
• \( n \) — Number of months for repayment
• \( Interest \) — Total interest charged for the loan (USD)

Explanation: The payment consists of an equal portion of the principal (loan divided by number of months) plus the interest charged for that period.

3. Understanding Affirm Payments

Details: Affirm offers transparent pricing with no hidden fees. You'll know exactly what you'll pay before you commit to the loan. Interest rates vary based on your creditworthiness.

4. Using the Calculator

Tips: Enter the total loan amount in USD, the number of months for repayment, and the total interest amount. All values must be valid (loan > 0, months ≥ 1, interest ≥ 0).

5. Frequently Asked Questions (FAQ)

Q1: Does Affirm charge any hidden fees?
A: No, Affirm is transparent about all costs upfront. There are no late fees, prepayment fees, or other hidden charges.

Q2: How is the interest amount determined?
A: Interest is based on your creditworthiness and loan terms. Affirm performs a soft credit check that doesn't affect your credit score.

Q3: Can I pay off my Affirm loan early?
A: Yes, you can pay off your loan early at any time with no prepayment penalties.

Q4: What happens if I miss a payment?
A: While Affirm doesn't charge late fees, missed payments may affect your ability to use Affirm in the future and could be reported to credit bureaus.

Q5: Is Affirm available for all purchases?
A: Affirm is available at participating merchants. Not all purchases or merchants qualify for Affirm financing.