Calculator.pro

Loan Calculator

Calculate loan payments, total interest, and view payment schedule for any loan type.

Quick Examples

$
The amount you plan to borrow
%
Annual interest rate for the loan
years
The length of time to repay the loan
How often the interest is compounded
How often you make payments on the loan

About This Calculator

This loan calculator helps you estimate your monthly loan payments for various types of loans. Whether you're considering an auto loan, personal loan, or any other type of installment loan, this calculator will help you understand the total cost of the loan, including interest. You can adjust loan amount, interest rate, term length, and payment frequency to see how different loan terms affect your payments and the total amount paid over time.

Frequently Asked Questions

How is the loan payment calculated?

The loan payment is calculated using the loan amount, interest rate, loan term, compounding frequency, and payment frequency. The formula accounts for the time value of money, compounding interest, and payment frequency to determine the regular payment amount needed to pay off the loan within the specified term.

What is the difference between compounding period and payment frequency?

The compounding period refers to how often interest is calculated and added to the principal. Payment frequency refers to how often you make payments on the loan. These can be different, which affects the total interest paid over the life of the loan.

How can I reduce the total interest paid on my loan?

You can reduce the total interest paid by making higher payments, choosing a shorter loan term, finding a loan with a lower interest rate, making more frequent payments (e.g., bi-weekly instead of monthly), or making additional principal payments when possible.

Why do bi-weekly payments often save money compared to monthly payments?

Bi-weekly payments save money because you make 26 half-payments per year (equivalent to 13 monthly payments) instead of 12 monthly payments. This results in paying down the principal faster, reducing the amount of interest that accrues on the loan.