This comprehensive tool helps you calculate three major loan types: Amortized Loans (Mortgages , Auto loans , Students loans or Personal loans ), Deferred Payment Loans , and Bond Value (determining initial value from a future face value).
Calculate your loan to generate the detailed schedule.
This is the most common structure for consumer debt. With an amortized loan, you make regular, fixed payments that systematically pay down both the principal and interest over the loan's term. Your payment amount stays the same until the debt is fully repaid.
Common examples include: Mortgages, auto loans, student loans, and personal loans.
While our general calculator is versatile, you can get more detailed insights with our specialized tools:
This structure is frequent in commercial lending or certain short-term financing scenarios. Unlike the amortized structure where payments are spread out, deferred payment loans require the entire principal and accumulated interest to be paid in one large lump sum at maturity. While some related products, like balloon mortgages, may have small, routine payments during the term, this specific calculation is only valid for loans where all principal and interest are due in a final, single payment.
Bonds represent a unique form of lending. Fundamentally, they involve a predetermined sum that the issuer (borrower) commits to pay the holder (lender) at maturity.
Two primary types exist: coupon bonds and zero-coupon bonds. Coupon bonds include periodic interest payments (coupons) based on a percentage of the face value. Zero-coupon bonds, however, do not make direct interest payments; instead, they are sold at a substantial discount to their face value, and the full face value is paid back at maturity. Please note: the calculator provided here performs calculations for zero-coupon bonds.
It's important to remember that while the face value at maturity is fixed, a bond's market price will fluctuate over its lifetime based on prevailing interest rates, market forces, and the issuer's creditworthiness.
The interest rate is the cost of borrowing money. For consumer loans, it's often expressed as the Annual Percentage Rate (APR), which includes the interest rate plus certain fees, giving you a truer picture of the annual cost.
Refine your understanding with our APR Calculator and Interest Calculator.
This is how often accrued interest is added to the principal balance, upon which future interest is calculated. The more frequently interest compounds, the more you will pay over the life of the loan. Most standard loans compound monthly. See the powerful effects with our Compound Interest Calculator.
The loan term is the total length of time you have to repay the debt. Choosing a longer term lowers your monthly payment but significantly increases the total interest you'll pay. A shorter term means higher monthly payments but much less interest overall.
A secured loan is backed by collateral—an asset you own, like a house or car. This reduces the lender's risk, which often results in lower interest rates and higher borrowing limits for you. However, if you default, the lender can seize the collateral.
Examples: Mortgages and auto loans.
An unsecured loan requires no collateral. Approval is based primarily on your creditworthiness, which lenders assess using the Five C's of Credit:
Due to the higher risk for the lender, unsecured loans often have higher interest rates and stricter approval criteria.
Examples: Credit cards, personal loans, and student loans. Plan your strategy with our Credit Card Calculator and Student Loan Calculator.