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CalculatorBuddy

Loan Calculator

Calculate loan payments three ways: an amortized loan's periodic payment and total interest, a deferred loan's lump sum due at maturity, or a bond's present value — with adjustable compounding.

$
%

Payment per Period

$1,110.21

Total of Payments
$133,224.60
Total Interest
$33,224.60

Principal vs interest

Principal 75%, Interest 25%
  • Principal75%
  • Interest25%

Amortization schedule

PeriodInterestPrincipalBalance
Year 1$5,795.24$7,527.22$92,472.78
Year 2$5,330.98$7,991.48$84,481.29
Year 3$4,838.08$8,484.38$75,996.91
Year 4$4,314.78$9,007.68$66,989.23
Year 5$3,759.21$9,563.25$57,425.98
Year 6$3,169.37$10,153.09$47,272.88
Year 7$2,543.14$10,779.32$36,493.57
Year 8$1,878.30$11,444.16$25,049.41
Year 9$1,172.45$12,150.01$12,899.40
Year 10$423.06$12,899.40$0.00
Payment per Period$1,110.21View results

Work out the cost of a loan three ways. The amortized mode finds the periodic payment and total interest for a loan repaid over time; the deferred mode finds the lump sum due at maturity; and the bond mode finds what a future payout is worth today. Compounding and pay-back frequencies are both adjustable.

Formula

The nominal rate is converted to an effective annual rate (EAR) using the compounding frequency, then applied to each loan type:

Effective rate:  EAR = (1 + i/c)^c − 1     (continuous: e^i − 1)

Amortized:  payment = P · r(1+r)^n / ((1+r)^n − 1),  r = (1+EAR)^(1/p) − 1
Deferred:   amount due = P · (1 + EAR)^years
Bond:       present value = future amount / (1 + EAR)^years

Here c is compounds per year, p is payments per year, and n = p × years.

For an amortized loan, paying more often (e.g. biweekly instead of monthly) chips away at the balance faster and reduces total interest.

Loan types

TypeYou enterYou get
Amortizedloan amount, term, ratepayment per period, total interest, schedule
Deferredloan amount, term, ratesingle lump sum due at maturity
Bondfuture due amount, term, ratepresent value to pay today

Examples

Amortized: $100,000 · 6% · 10 years · monthly

With monthly compounding and monthly payments, the payment is $1,110.21, for $133,224.60 paid in total and $33,224.60 in interest.

Deferred: $100,000 · 6% · 10 years

Compounded annually, a lump-sum loan grows to $179,084.77 at maturity — $79,084.77 of it interest.

Bond: $100,000 due in 10 years · 6%

At 6% compounded annually, that future $100,000 is worth $55,839.48 today.

Frequently asked questions

What are the three loan types this calculator handles?
An amortized loan is repaid in equal payments over the term (mortgages, auto and personal loans). A deferred-payment loan is paid back as a single lump sum at maturity, with interest compounding the whole time. A bond is a fixed future amount, and the calculator finds its present value — what you'd pay now to receive that amount later.
How does compounding frequency affect the result?
The nominal rate is first turned into an effective annual rate based on how often interest compounds — annually, monthly, daily, or continuously. More frequent compounding raises the effective rate slightly, so a 6% rate compounded monthly costs a little more than 6% compounded annually.
What is the difference between APR and APY?
APR is the nominal annual rate before compounding (a 6% APR compounded monthly). APY (annual percentage yield) is the effective rate after compounding is applied. This calculator's "Compound" dropdown converts between them.
How is an amortized loan payment calculated?
It uses the amortization formula M = P · r(1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the rate per payment period, and n is the number of payments. The pay-back frequency sets how many payments fall in a year.
What is a secured vs. unsecured loan?
A secured loan is backed by collateral the lender can claim if you default — a house for a mortgage, a car for an auto loan. An unsecured loan (most personal loans, credit cards) has no collateral and is approved based on creditworthiness, usually at a higher rate.

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