Loan Calculator
Calculate monthly loan payments, total interest, and amortization schedules for personal, auto, student, and business loans — with extra-payment modeling and a full payment schedule.
Fixed monthly payments — installment loans, auto, personal, student
Loan Details
Try $250,000 at 6.5% for 5 years to instantly see your monthly payment and interest breakdown.
What is a Loan Calculator?
A loan calculator helps you understand the real cost of borrowing before you sign anything. Whether you're taking out a personal loan, financing equipment, or structuring a bond, seeing the numbers upfront lets you compare offers, negotiate better terms, and plan your cash flow with confidence.
This calculator goes beyond basic loan-payment math. It handles three fundamentally different loan structures — amortized installment loans, deferred lump-sum payments, and bond present value — so you can analyze virtually any borrowing scenario in one place. If you're shopping for a vehicle specifically, our auto loan calculator models trade-in equity and sales tax; for a home, see the mortgage calculator.
Three Types of Loans Explained
Amortized Loan
The most common type. You make equal periodic payments (weekly, monthly, etc.) that gradually pay down both principal and interest. Car loans, home loans, and personal loans typically work this way.
Deferred Payment Loan
No payments are made during the loan term. Interest compounds and accumulates. The entire balance — original principal plus all accrued interest — becomes due at maturity. Common in student loans and some business financing.
Bond / Lump Sum
You know the future amount that must be paid (the face value of a bond), and you want to find the present value — how much to borrow or invest today. Useful for structured notes, savings bonds, and zero-coupon instruments.
How to Use This Calculator
- 1
Pick your loan type
Use the tab selector at the top to choose between Amortized, Deferred Payment, or Bond/Lump Sum — depending on how your loan works.
- 2
Enter the loan amount
For amortized and deferred loans, enter the principal (amount borrowed). For bond calculations, enter the predetermined future amount that will be owed at maturity.
- 3
Set the term and rate
Enter the loan duration in years and months, then the annual interest rate. For variable-rate loans, use your best estimate or the initial fixed rate.
- 4
Choose compounding and payment frequency
Most lenders compound monthly. Payment frequency (for amortized loans) can be weekly, bi-weekly, monthly, or less frequent. Bi-weekly payments can save significant interest.
- 5
Explore the results
Check the amortization schedule to see exactly how each payment splits between principal and interest. Use the extra payment section to model aggressive payoff scenarios.
Understanding the Key Numbers
Monthly Payment
For amortized loans, this is the fixed amount you pay each period. It stays constant throughout the loan, but early payments go mostly toward interest while later ones build equity in your principal.
Total Interest
The full interest cost over the loan's life — the real cost of borrowing on top of the principal. A longer term lowers your payment but dramatically increases total interest paid.
Compound Frequency
How often interest is added to the balance. Daily compounding costs slightly more than monthly. The difference is small for short loans but adds up over decades.
Present Value vs Future Value
Present value is what money is worth today; future value is what it grows (or compounds) to. Bond calculations work backwards — you know the future value and solve for what to borrow now.
Tips to Reduce Your Loan Cost
✓ Switch to bi-weekly payments
Paying every two weeks instead of monthly means 26 half-payments per year (equivalent to 13 full months). You'll pay off a 30-year loan in about 25 years.
✓ Make extra principal payments
Even an additional 5–10% per payment accelerates payoff and slashes total interest. Use our Extra Payment section to model exactly how much you'd save.
✓ Shop for a lower rate
A 0.5% rate difference on a large loan can cost or save tens of thousands. Use this calculator to compare offers from multiple lenders side by side.
✓ Avoid deferred loans for long terms
Compound interest on a deferred loan can double the amount you owe. Always calculate the maturity amount before agreeing to a deferred structure.
✓ Shorten the term if cash flow allows
The Term Comparison table shows exactly how much interest you save by choosing a 5-year loan over 7 or 10. Often the payment difference is smaller than expected.
✓ Negotiate loan fees separately
Origination fees and closing costs add to the true cost of borrowing. Ask for an APR (annual percentage rate) that includes fees, not just the stated interest rate.
Common Loan Mistakes to Avoid
Focusing only on the monthly payment
Lenders love to extend your term to lower the monthly number. A lower payment often means far more total interest paid. Always check the Total Cost column.
Ignoring compound frequency
Daily compounding is more expensive than monthly for the same stated rate. When comparing loans, use the effective annual rate (EAR), not just the nominal rate.
Underestimating deferred loan growth
A deferred loan at 8% doubles in about 9 years. If you're not making any payments, the balance can balloon to an unmanageable level faster than expected.
Not accounting for prepayment penalties
Some lenders charge fees for paying off a loan early. Factor these in before making extra payments, and ask lenders upfront if a prepayment penalty applies.
Common Loans You Can Calculate
Personal Loans
Unsecured installment loans from banks, credit unions, and online lenders. Common terms run 2–7 years at fixed APR. Use the Amortized tab with the loan amount, APR, and term to see your monthly payment.
Auto Loans
Secured loans backed by the vehicle. Most run 36–84 months. Try the calculator with the financed amount (after trade-in and down payment) — or jump to our dedicated auto loan calculator for tax and trade-in math.
Student Loans
Federal and private student loans typically use daily simple interest on an amortized schedule. Plug in the disbursed principal, your rate, and the standard 10-year term to estimate the standard payment.
Small Business Loans
SBA 7(a), SBA microloans, and traditional bank term loans run 5–25 years. The amortized tab handles fixed-rate term loans cleanly — use the deferred tab if your loan defers principal during a draw period.
Equipment Financing
Used to finance machinery, vehicles, or tech for your business. Typically structured as 2–7 year amortized loans secured by the equipment itself. Build your payment schedule the same way as any installment loan.
Debt Consolidation Loans
Roll multiple high-interest balances into a single fixed-rate installment loan. Compare your blended current rate against the consolidated loan's APR — this calculator shows total interest paid so you can quantify the savings.
How Loan Payments Are Calculated
Every fixed-rate amortized loan in the U.S. and most of the world uses the same closed-form payment formula. It is the same equation used by our mortgage calculator and auto loan calculator — only the inputs differ.
M
Monthly Payment
P
Principal (loan amount)
r
Monthly Interest Rate (APR ÷ 12)
n
Total Payments (months)
Each payment covers that period's interest on the outstanding balance first; whatever remains chips away at the principal. Early in the schedule most of M is interest; by the final payments most of M is principal. To go deeper into how interest accumulates over time, see our compound interest calculator — and for a simpler flat-interest model, our simple interest calculator.
Trusted by borrowers, students, homeowners, and financial planners worldwide.
Updated for 2026 lending scenarios and real-world repayment planning. Methodology reviewed by an Accredited Financial Counselor (AFC®) — see our methodology and editorial policy.
Frequently Asked Questions
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