Loan Calculator
Work out a loan's payment, amount, rate or term from the other three, with a full amortization schedule.
0% to 100%
1 to 50 years
= 60 monthly payments
A lump sum due with the last payment.
Extra payments
Amortization schedule
Interest is rounded to the currency's smallest unit each period, so the last payment differs slightly.
| Year | Paid ($) | Interest ($) | Principal ($) | Balance ($) |
|---|---|---|---|---|
| 1 | 4,752.24 | 1,290.34 | 3,461.90 | 16,538.10 |
| 2 | 4,752.24 | 1,040.04 | 3,712.20 | 12,825.90 |
| 3 | 4,752.24 | 771.72 | 3,980.52 | 8,845.38 |
| 4 | 4,752.24 | 483.97 | 4,268.27 | 4,577.11 |
| 5 | 4,752.52 | 175.41 | 4,577.11 | 0.00 |
Works out the payment on a loan, or turns the question around: how much a payment lets you borrow, what interest rate a quoted payment implies, or how long a payment takes to clear the loan. It handles weekly to yearly payments, interest that compounds on a different schedule from the payments, a balloon due at the end, and extra payments, in any currency.
How to use it
- Solve for — the figure the calculator works out. Its field leaves the form; the other three are entered. Switching keeps the last answer in the field that replaces it.
- Term — in years or months, up to 50 years. The number of payments is months × payments a year ÷ 12, rounded to a whole payment, and shows under the field. Quarterly and yearly payments take a term of whole quarters or years.
- How often you pay — weekly (52 a year), every two weeks (26), twice a month (24), monthly, quarterly or yearly.
- Interest compounds — with each payment unless you change it. Set it to half-yearly for a Canadian fixed-rate loan, or daily where the lender says so.
- Balloon payment — an optional lump sum due with the last payment, which lowers the regular payment.
- Extra payments — up to five, each once, with every payment or once a year from a payment number. They either shorten the term at the same payment or lower the payment over the same term.
How it works
The payment repays the loan in equal instalments, each paying the period's interest first and the rest off the balance. As lenders do, the payment and each period's interest are rounded to the cent (the currency's smallest unit), and the last payment takes whatever remains, so it can differ by a few cents.
When interest compounds on a different schedule from the payments, the annual rate is first turned into the equivalent rate per payment, so a Canadian-style loan compounded half-yearly and paid monthly is charged (1 + r ÷ 2)^(1/6) − 1 a month. Solving for the interest rate searches for the rate whose payment matches the one entered; solving for the term runs the payment until the loan is cleared.
Payment = (P × (1 + i)ⁿ − B) × i ÷ ((1 + i)ⁿ − 1)
Loan amount = Payment × (1 − (1 + i)⁻ⁿ) ÷ i + B × (1 + i)⁻ⁿ
i = (1 + r ÷ c)^(c ÷ p) − 1
P = loan amount, B = balloon, n = payments, r = annual rate, c = compounding periods a year, p = payments a year
Examples
A 25,000 car loan at 7% over 5 years, paid monthly
The payment is $ 495.03 a month. Over 60 payments the loan costs $ 4,701.82 in interest, and the last payment is $ 495.05.
The rate behind a dealer's quote
A dealer quotes 520 a month for 60 months on 25,000. Solving for the interest rate gives 9.09% a year, the rate to compare with other offers.
A balloon loan
With a 10,000 balloon on the same loan, the monthly payment falls to $ 355.35, and the last payment is $ 10,355.45. Interest rises to $ 6,321.10, because the balance stays higher for longer.
A 5,000 personal loan at 12% over 2 years, paid weekly
104 weekly payments of $ 54.13 cost $ 629.75 in interest, against $ 648.80 for 24 monthly payments of $ 235.37: paying more often brings the balance down sooner.
Monthly payment per 10,000 borrowed
| Rate | 3 years | 5 years | 7 years | 10 years |
|---|---|---|---|---|
| 4% | $ 295.24 | $ 184.17 | $ 136.69 | $ 101.25 |
| 6% | $ 304.22 | $ 193.33 | $ 146.09 | $ 111.02 |
| 8% | $ 313.36 | $ 202.76 | $ 155.86 | $ 121.33 |
| 10% | $ 322.67 | $ 212.47 | $ 166.01 | $ 132.15 |
| 12% | $ 332.14 | $ 222.44 | $ 176.53 | $ 143.47 |
| 15% | $ 346.65 | $ 237.90 | $ 192.97 | $ 161.33 |
| 20% | $ 371.64 | $ 264.94 | $ 222.06 | $ 193.26 |
Frequently asked questions
See also
- Mortgage Calculator — for a home loan, with taxes, insurance, PMI and country rules.
- Auto Loan Calculator — for a car, with trade-in, sales tax and fees.
- Debt Payoff Planner — to pay off several loans and cards from one budget.
- EMI Calculator — for Indian loans, with flat-rate and in-advance EMIs.