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.
How to use this calculator
- Choose Amortized, Deferred, or Bond to match the question you want to answer.
- Enter the amount, term, and nominal annual interest rate.
- Match the compounding frequency to your assumptions. In Amortized mode, also choose the pay-back frequency.
- Check the result for that mode and, where shown, the repayment schedule.
Already know the payment you can make? The Repayment Calculator estimates how long it takes to clear a balance. The Amortization Calculator provides a dedicated repayment breakdown.
Understanding your results
For an amortized loan, the payment is the amount due per selected payment period, which may not be a month. Total interest is the borrowing cost within this model; total payments include both the original balance and that interest. The schedule shows how each payment reduces the balance.
Deferred mode gives the single amount due at the end. Bond mode gives the present value of a future amount. These answer different questions, so their headline figures should not be compared as if they were monthly payments.
Loan types
| Type | You enter | You get |
|---|---|---|
| Amortized | loan amount, term, rate | payment per period, total interest, schedule |
| Deferred | loan amount, term, rate | single lump sum due at maturity |
| Bond | future due amount, term, rate | present 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.
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.
Scope of this general model
The calculator does not include origination charges, insurance, late fees, prepayment rules, taxes, or changing rates. Use a product-specific calculator when those cash flows matter. For U.S. consumer credit, compare the rate, finance charge, amount financed, payment schedule, and APR shown in the lender's disclosures.
Choose a loan-specific estimate
For origination fees and the cash you actually receive, use the Personal Loan Calculator. The Student Loan Calculator also models school-period borrowing and extra repayments. For a purchase with marine sales tax and fees, use the Boat Loan Calculator. Compare the assumptions as well as the monthly payment.