How do I use the Loan Calculator?

Enter the required values, then calculate. The Loan Calculator shows results, formulas, and step-by-step work when available. No account is required.

Loan Calculator – Monthly Payment, Interest & Amortization

How it works

Most consumer loans are amortized: equal payments until maturity. Commercial loans may defer everything to one lump sum. Zero-coupon bonds pay a set face value at maturity; the amount received today is the discounted present value.

A = P · i(1+i)^N / ((1+i)^N − 1) · i = (1 + r/c)^(c/p) − 1

When to use

Use this tool when you need to: default: {principal} at 6% for 10 years, monthly compounding and monthly pay-back (~{payment}). Switch tabs for a lump sum due at maturity or a zero-coupon bond.

How to use this tool

Enter your values in the fields above.
Review the formula and any mode options for your problem.
Read the result and the step-by-step solution.

Default: {principal} at 6% for 10 years, monthly compounding and monthly pay-back (~{payment}). Switch tabs for a lump sum due at maturity or a zero-coupon bond.

Frequently asked questions

What is the Loan Calculator?: Most consumer loans are amortized: equal payments until maturity. Commercial loans may defer everything to one lump sum. Zero-coupon bonds pay a set face value at maturity; the amount received today is the discounted present value.
How do I use the Loan Calculator?: Enter the required values, then calculate. The Loan Calculator shows results, formulas, and step-by-step work when available. No account is required.
What formula does the Loan Calculator use?: A = P · i(1+i)^N / ((1+i)^N − 1) · i = (1 + r/c)^(c/p) − 1

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Amortized loan

Fixed payments until the loan is paid off. Compounding and pay-back frequency can differ.

How it works

Amortized loan

Fixed payments cover interest and then principal until maturity. Mortgages, auto loans, student loans, and personal loans usually work this way. Each period’s interest is charged on the remaining balance.

Deferred payment loan

Commercial or short-term loans may have a single lump sum of principal plus interest due at maturity, with no routine payments in between. The due amount is the compound future value of the principal.

Bond (zero-coupon)

The borrower promises a face (par) amount at maturity. The amount received today is that face value discounted at the stated compounding convention — the same idea as a zero-coupon bond. Coupon bonds that pay interest along the way are not modeled here.

Compounding vs pay-back

Compounding is how often unpaid interest is added to the balance. Pay-back is how often you send money. They are not the same: a loan can compound daily and still be paid monthly. The payment-period rate is i = (1 + r/c)^(c/p) − 1, or e^(r/p) − 1 if compounding is continuous. Monthly compounding with monthly pay-back is ordinary APR.

How it works

A = P · i(1+i)^N / ((1+i)^N − 1) · i = (1 + r/c)^(c/p) − 1

When to use

Use this tool when you need to: default: {principal} at 6% for 10 years, monthly compounding and monthly pay-back (~{payment}). Switch tabs for a lump sum due at maturity or a zero-coupon bond.

How to use this tool

Enter your values in the fields above.
Review the formula and any mode options for your problem.
Read the result and the step-by-step solution.

Default: {principal} at 6% for 10 years, monthly compounding and monthly pay-back (~{payment}). Switch tabs for a lump sum due at maturity or a zero-coupon bond.

Frequently asked questions

What is the Loan Calculator?: Most consumer loans are amortized: equal payments until maturity. Commercial loans may defer everything to one lump sum. Zero-coupon bonds pay a set face value at maturity; the amount received today is the discounted present value.
How do I use the Loan Calculator?: Enter the required values, then calculate. The Loan Calculator shows results, formulas, and step-by-step work when available. No account is required.
What formula does the Loan Calculator use?: A = P · i(1+i)^N / ((1+i)^N − 1) · i = (1 + r/c)^(c/p) − 1

Browse categories