Loan Calculator

A loan calculator is a simple tool that will allow you to predict how much a personal loan will cost you as you pay it back every month. It's quite simple: You provide the calculator with some basic information about the loan, and it does the math and spits out your monthly payment.

Formula: The formula to calculate loan payment is: M = P * (r(1+r)^n) / ((1+r)^n – 1)

Example: If you borrow $10,000 with an annual interest rate of 5% for a period of 5 years, your monthly payment will be approximately $188.71.

Amortized Loan Calculator

An amortization calculator can show you how your principal and interest are paid over the life of your loan, and how much you can save by making additional mortgage payments.

Formula: The formula to calculate amortized loan payment is same as the above one: M = P * (r(1+r)^n) / ((1+r)^n – 1)

Example: For a 30-year fixed mortgage with a 3.5% interest rate and a balance of $200,000, the monthly payment would be $898.09.

Deferred Payment Loan Calculator

A deferred payment loan is a loan where for some specified period you make zero payments or make just interest payments. After this period, payments begin and the loan starts amortizing. This calculator lets you calculate this period and the subsequent amortization schedule.

Formula: The formula to calculate deferred payment loan depends on the loan terms and is more complex. As a rule of thumb, during the deferred period you only pay interest, and after that the formula is the same as for regular loan payment.

Example: If you borrow $10,000 with an annual interest rate of 5% and you have a deferred period of 1 year for a total loan period of 6 years, during the first year you pay approximately $41.67 per month (interest only), and for the following 5 years your monthly payment will be approximately $188.71.