Loan Calculator
Monthly Payment:$0.00
Total Interest Paid:$0.00
Total of all Payments:$0.00
Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
|---|
A Guide to the Loan Calculator
A loan is a sum of money borrowed from a financial institution that is expected to be paid back with interest. This calculator helps you estimate the financial details of a loan.
How to Use
- Loan Amount: The total amount of money you are borrowing. This is the principal amount of the loan.
- Loan Term (in years): The duration over which you will repay the loan. Longer terms usually mean lower monthly payments but higher total interest.
- Annual Interest Rate (%): The yearly cost of borrowing the money, expressed as a percentage of the loan amount.
Understanding the Results
- Monthly Payment: The fixed amount you will need to pay each month to repay the loan over its term.
- Total Interest Paid: The total cumulative amount of interest you will pay over the life of the loan. This represents the cost of borrowing.
- Total Payment: The sum of the principal loan amount and the total interest paid. This is the total amount of money you will have paid back by the end of the loan term.
- Amortization Schedule: A detailed table showing each monthly payment's breakdown into principal and interest, and the remaining balance after each payment.
Loan Formula
The calculation for the monthly payment (M) is based on the following formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
- M: Monthly Payment
- P: Principal Loan Amount
- i: Monthly Interest Rate (annual rate divided by 12)
- n: Number of Payments (loan term in years multiplied by 12)