Loan Calculator
Calculate loan payments, total interest costs, and amortization schedules for any type of loan with flexible terms and detailed analysis.
Loan Information
Loan Type
$
%
Payment Summary
Monthly Payment
$0.00
Total Payments
$0.00
Total Interest
$0.00
Loan Amount
$10,000.00
Principal vs. Interest
Principal: Infinity%
Interest: NaN%
Understanding Your Loan Payment
Your loan payment is calculated based on the principal amount, interest rate, and loan term. The formula used is:
P = L[r(1+r)^n]/[(1+r)^n-1]
Where:
P = Payment Amount
L = Loan Principal
r = Interest Rate per Period
n = Number of Payments
Understanding Loans
What is a Loan?
A loan is a sum of money borrowed from a lender (such as a bank, credit union, or financial institution) that is expected to be paid back with interest. The borrower receives a lump sum upfront and repays the loan over a predetermined period through regular payments.
Key Loan Terms
Principal
The original amount borrowed from the lender.
Interest Rate
The percentage charged by the lender for borrowing the money, typically expressed as an annual percentage rate (APR).
Loan Term
The length of time over which you'll repay the loan.
Monthly Payment
The amount you pay each month, which includes both principal and interest.
Amortization
The process of paying off debt through regular payments over time, gradually reducing the principal balance.
Total Interest
The total amount of interest paid over the life of the loan.
Types of Loans
Personal Loans
Unsecured loans that can be used for a variety of purposes such as debt consolidation, home improvements, or unexpected expenses. Typically have higher interest rates than secured loans.
Auto Loans
Secured loans specifically for purchasing vehicles, where the vehicle serves as collateral. Generally have lower interest rates than personal loans.
Student Loans
Loans designed to help students pay for education expenses. Federal student loans often have more flexible repayment options than private loans.
Business Loans
Loans for business purposes such as startup costs, expansion, equipment purchase, or working capital. Can be secured or unsecured depending on the lender and business circumstances.
Payment Frequency Options
While most loans are repaid on a monthly basis, some loans offer alternative payment schedules:
- Monthly payments: The most common frequency, with 12 payments per year.
- Bi-weekly payments: Payments made every two weeks (26 payments per year), which can help you pay off your loan faster and reduce total interest.
- Weekly payments: More frequent payments (52 per year) that can further reduce interest costs and accelerate loan payoff.
Tips for Using This Calculator
- Compare different loan terms to understand how they affect both monthly payments and total interest paid.
- Experiment with different payment frequencies to see how they impact your loan payoff timeline.
- Use the loan type presets to quickly estimate payments for specific loan categories.
- Review the amortization schedule to understand how your payments are applied to principal and interest over time.
- Consider making additional payments toward the principal to pay off your loan faster and reduce total interest costs.
Important Note
This calculator provides estimates based on the information you enter. Actual loan terms, rates, and eligibility can vary based on your credit score, income, debt-to-income ratio, and other factors. Always consult with a financial professional or lender before making financial decisions.