How to Use This Loan Calculator
Enter your loan details in any of the three calculators below. Each handles a different loan structure. Click Calculate to see your results, including a payment breakdown and amortization schedule.
Amortized Loan
Fixed payments paid periodically until loan maturity
About Amortized Loans
Many consumer loans — mortgages, car loans, student loans, and personal loans — are amortized loans. With this structure, you make regular, equal payments over the life of the loan. Each payment covers both interest and a portion of the principal. Early payments are mostly interest; later payments are mostly principal. This calculator shows you exactly how much you'll pay each period and how your balance decreases over time.
The monthly payment formula is: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the principal, r is the monthly interest rate, and n is the total number of payments. A shorter loan term means higher monthly payments but significantly less total interest paid over the life of the loan.
Deferred Payment Loan
Single lump sum paid at loan maturity
About Deferred Payment Loans
Many commercial or short-term loans use this structure. Instead of regular payments, the borrower pays a single lump sum — principal plus all accumulated interest — at the end of the loan term. This is common in business financing and balloon loans.
The total amount due at maturity is calculated as: A = P × (1 + r)^n, where P is the principal, r is the periodic interest rate, and n is the number of periods. The total amount due grows over time as interest compounds, so it's important to plan ahead for the large payment at maturity.
Bond Calculator
Predetermined lump sum paid at loan maturity (zero-coupon bond)
About Zero-Coupon Bonds
This calculator computes the present value (amount received today) of a bond given its face value (the amount paid at maturity). Zero-coupon bonds don't pay periodic interest; instead, they're sold at a discount and the full face value is paid at maturity.
The present value formula is: PV = FV / (1 + r)^n, where FV is the face value, r is the periodic interest rate, and n is the number of periods. The difference between the purchase price and face value represents the total interest earned. This concept is fundamental to understanding the time value of money in fixed-income investments.
Related Calculators
Quick Tips
- •A lower interest rate saves thousands over the life of a loan.
- •Extra principal payments reduce your total interest significantly.
- •Shorter loan terms mean higher payments but less total interest.
- •Compare APR (not just interest rate) when shopping for loans.