Loan Calculator

Calculate loan payments and analyze different loan types

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Loan Calculator

A loan is a contract between a borrower and a lender in which the borrower receives an amount of money (principal) that they are obligated to pay back in the future. Most loans can be categorized into one of three categories: Amortized Loan, Deferred Payment Loan, and Bond.

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🏠 Amortized Loan âŗ Deferred Payment 📜 Bond

🏠 Amortized Loan: Paying Back a Fixed Amount Periodically

Use this calculator for basic calculations of common loan types such as mortgages, auto loans, student loans, or personal loans.

$

years

months

%

📊 Results

Payment Every Month $1,110.21
Total of 120 Payments $133,224.60
Total Interest $33,224.60

âŗ Deferred Payment Loan: Paying Back a Lump Sum Due at Maturity

$

years

months

%

📊 Results

Amount Due at Loan Maturity $179,084.77
Total Interest $79,084.77

📜 Bond: Paying Back a Predetermined Amount Due at Loan Maturity

Use this calculator to compute the initial value of a bond/loan based on a predetermined face value to be paid back at bond/loan maturity.

$

years

months

%

📊 Results

Amount Received When the Loan Starts $55,839.48
Total Interest $44,160.52

📚 Understanding Loans

Amortized Loan: Fixed Amount Paid Periodically

Many consumer loans fall into this category of loans that have regular payments that are amortized uniformly over their lifetime. Routine payments are made on principal and interest until the loan reaches maturity (is entirely paid off).

Deferred Payment Loan: Single Lump Sum Due at Loan Maturity

Many commercial loans or short-term loans are in this category. Unlike amortized loans, these loans have a single, large lump sum due at maturity. This calculation only works for loans with a single payment of all principal and interest due at maturity.

Bond: Predetermined Lump Sum Paid at Loan Maturity

This kind of loan is rarely made except in the form of bonds. Technically, bonds operate differently from more conventional loans in that borrowers make a predetermined payment at maturity. The face, or par value of a bond, is the amount paid by the issuer (borrower) when the bond matures.

Loan Basics for Borrowers

Interest Rate

Nearly all loan structures include interest, which is the profit that banks or lenders make on loans. Interest rate is the percentage of a loan paid by borrowers to lenders. For most loans, interest is paid in addition to principal repayment.

Compounding Frequency

Compound interest is interest that is earned not only on the initial principal but also on accumulated interest from previous periods. Generally, the more frequently compounding occurs, the higher the total amount due on the loan.

Loan Term

A loan term is the duration of the loan, given that required minimum payments are made each month. The term of the loan can affect the structure of the loan in many ways. Generally, the longer the term, the more interest will be accrued over time, raising the total cost of the loan for borrowers, but reducing the periodic payments.