Introduction
This free loan calculator helps you figure out your monthly payment, total interest, and the full cost of a loan before you borrow. Enter your loan amount, interest rate, and loan term to get instant results along with a complete amortization schedule that shows exactly how each payment splits between principal and interest.
The calculator includes three modes to cover different types of loans. The Amortized Loan tab is the most common and works for auto loans, personal loans, student loans, and mortgages: any loan where you make regular payments over time. You can adjust the compounding frequency, payment frequency, and even add origination fees to see how they affect your total cost. If you want to pay off your loan faster, enter a higher amount in the accelerated payment field to see how much time and money you save.
The Deferred Payment tab calculates what you will owe when no payments are made until the end of the loan term. This is useful for any loan where interest builds up until one payment at the end. The Bond (Present Value) tab works in reverse. It tells you what a future sum of money is worth today based on a given interest rate, which is helpful for pricing bonds or comparing lump-sum offers.3
How to Use Our Loan Calculator
Enter your loan details below and this calculator will show your payment amount, total interest paid, a full amortization schedule, and helpful charts. This tool has three modes: Amortized Loan, Deferred Payment, and Bond (Present Value).
Amortized Loan
Loan Amount: Type in the amount of money you want to receive. This can be any value from $1,000 to $10,000,000. If you enter a loan fee, the calculator works out the larger loan you would need so that this amount is left after the fee comes out, and shows it as the Actual Loan Principal.
Annual Interest Rate: Enter the yearly interest rate on your loan as a percentage. For example, type 5.5 for a 5.5% rate. Most loans range from 3% to 15%.
Loan Term: Set how long you have to pay back the loan. Enter the number of years and any extra months. The term must be at least 1 month.
Compounding Frequency: Choose how often interest is added to your balance. Options include annually, semi-annually, quarterly, monthly, semi-monthly, biweekly, weekly, daily, or continuously.
Payment Frequency: Pick how often you make payments. You can choose from every day, every week, every 2 weeks, every half month, every month, every quarter, every 6 months, or every year.
Loan Fees / Origination Fees: If your lender charges an upfront fee, enter it here as a percentage of the loan. Typical origination fees range from 1% to 6%. Leave this at 0 if there are no fees.
Minimum / Accelerated Payment: If you want to pay more than the standard payment each period, enter that higher amount here. This lets you see how extra payments reduce your total interest and shorten the loan term.
Deferred Payment Loan
Loan Amount: Enter the amount you are borrowing, from $1,000 to $10,000,000. With a deferred loan, you make no payments until the end of the term.
Annual Interest Rate: Type in the yearly interest rate as a percentage. This is the rate at which interest builds up on your balance over time.
Loan Term: Enter the number of years and months until the loan is due. At the end of this term, you pay back the full balance including all interest that has built up.
Compounding Frequency: Select how often interest is calculated and added to the loan balance. More frequent compounding means slightly more interest will accrue over the life of the loan.3
Bond (Present Value)
Face Value: Enter the amount that will be due at maturity. This is the future value of the bond or loan. You can enter any amount from $1,000 to $100,000,000.
Annual Interest / Discount Rate: Type in the yearly rate used to discount the future value back to today. This tells the calculator how much the money is worth right now compared to what it will be worth later.
Term to Maturity: Enter the number of years and months until the bond or loan reaches its maturity date and the face value is paid out.
Compounding Frequency: Choose how often the discount rate is compounded. This affects how the present value is calculated. Options range from annually to daily, or even continuously.
What Is a Loan Calculator?
A loan calculator is a tool that helps you figure out how much you will pay when you borrow money. It takes your loan amount, interest rate, and loan term, then shows you your regular payment, the total interest you will owe, and the full cost of the loan. This makes it easier to plan your budget and compare different loan options before you commit.
How Loans Work
A loan is money you borrow from a bank, credit union, or other lender. You agree to pay it back over time, usually with interest. Interest is the fee the lender charges you for using their money.4 It is shown as a percentage called the annual interest rate. The higher the rate, the more you pay over the life of the loan.1 The loan term is how long you have to pay it back. A longer term means smaller payments each month, but you end up paying more interest overall.2
Types of Loans Covered by This Calculator
Amortized Loans
With an amortized loan, you make equal payments on a regular schedule, usually monthly, until the loan is fully paid off.2 Each payment covers two things: part goes toward the principal (the original amount you borrowed) and part goes toward interest. Early in the loan, a larger share of each payment goes to interest. Over time, more of each payment goes toward the principal.2 Car loans, personal loans, and mortgages are all examples of amortized loans.5
Deferred Payment Loans
With a deferred payment loan, you do not make any payments during the loan term. Instead, interest builds up (or "accrues") on top of the original amount, and you pay everything back in one lump sum at the end. This is sometimes called a balloon payment. Because interest keeps growing on a larger and larger balance, the total amount due at the end can be much higher than what you originally borrowed.
Bond (Present Value) Calculation
The bond calculator works in reverse. Instead of starting with a loan amount, you start with a future amount (the face value) and figure out what it is worth today. This is called the present value. It answers the question: "If I need $50,000 in 10 years, how much is that worth right now at a given interest rate?" Investors use this concept when buying bonds, treasury bills, and other financial instruments sold at a discount.
Key Terms to Know
- Principal: The original amount of money you borrow.
- Interest Rate: The yearly percentage the lender charges you for borrowing.
- Loan Term: The total time you have to repay the loan.
- Compounding Frequency: How often interest is calculated and added to your balance. Interest can compound annually, quarterly, monthly, daily, or even continuously.3 More frequent compounding means slightly more interest over time.3
- Payment Frequency: How often you make payments: monthly, biweekly, weekly, and so on. Paying more often can reduce total interest.
- Origination Fees: A one-time fee some lenders charge for processing the loan, usually 1% to 6% of the loan amount. Some lenders take this fee out of your disbursement, meaning you receive less money but still owe the full amount.4
- Amortization Schedule: A table that shows every single payment broken down into principal and interest, along with your remaining balance after each payment.5
Tips for Borrowers
Even a small difference in interest rate can save or cost you hundreds or thousands of dollars. Use the calculator to compare rates side by side. If you can afford to, try entering a higher payment in the accelerated payment field. You will see how paying extra each month reduces your total interest and helps you get out of debt faster. Also pay attention to fees. A loan with a low rate but high origination fees can sometimes cost more than a loan with a slightly higher rate and no fees. Before taking on a new loan, it's smart to check your debt-to-income ratio to make sure the payment fits comfortably within your budget. If you're carrying credit card debt alongside a loan, paying off high-interest balances first can save you the most money overall.