Loan Calculator – Calculate Loan Payments, Interest & Amortization

Loan Calculator

Easily calculate and visualize your loan payments for amortized, deferred, and bond-type loans. See payment breakdowns, amortization, and learn about loan structures.

Amortized Loan: Fixed Payments

Calculate regular fixed payments (like mortgages, auto, or personal loans), see payment breakdown, and get an amortization schedule.

Results:

Payment Every Month:
Total of Payments:
Total Interest:

Amortization Table

#	Payment	Principal	Interest	Remaining Balance

Deferred Payment Loan: Lump Sum at Maturity

Calculate single-lump-sum loans (balloon loans, some commercial/short-term loans), due with all interest and principal at maturity.

Results:

Amount Due at Loan Maturity:
Total Interest:

Schedule Table

Year	Amount Owed	Interest

Bond: Value Given Lump Sum at Maturity

Compute present value of a bond/loan with a specified maturity value, showing interest and schedule. (Zero-coupon structure)

Results:

Amount Received When Loan Starts:
Total Interest:

Schedule Table

Year	Value	Interest Accrued

What is a Loan?

A loan is a contract in which a lender gives money or resources to a borrower, who must pay it back, usually with interest and within a set time period. The three most common loan categories are:

Amortized Loan: Paid back with fixed, regular payments (e.g., mortgage, car, or personal loans)
Deferred Payment Loan: Paid back as a lump sum (principal plus interest) at loan maturity (e.g., certain commercial or balloon loans)
Bond: The borrower receives less than face value, but pays the full face value at maturity (e.g., zero-coupon bonds)

Interest Rate & Compounding

Interest Rate: The cost of borrowing money. Usually shown as APR (Annual Percentage Rate), which may include fees as well as interest.
Compounding Frequency: How often interest is added to the balance (monthly, quarterly, etc.). More frequent compounding leads to more interest accrued.

Types of Consumer Loans

Secured loans: Require collateral (e.g., mortgages, auto loans). Safer for the lender, often with lower rates.
Unsecured loans: No collateral needed (e.g., personal loans, most credit cards), so higher rates and stricter approval.

Practical Tips:

Compare interest rates, fees, and loan terms before deciding.
Understand amortization to know how much goes toward interest/principal each payment.
Paying extra toward principal can reduce total interest paid.

Frequently Asked Questions

What’s the difference between APR and APY? APR reflects the yearly interest including fees; APY reflects how interest builds with compounding.
How is loan interest calculated? It depends on compounding frequency and whether the loan is amortized, lump-sum, or a bond.
Can I pay off my loan early? Many loans allow this, but check your agreement for prepayment penalties.