A loan calculator is a handy tool for estimating monthly payments. It is especially helpful for mortgages, auto loans, and personal loans.
Our loan calculator uses a simple formula to calculate your monthly payment, including principal and interest, using the known values of loan amount, term in years or months, and interest rate as a percentage. It also calculates an amortization schedule.
Loan Amount
A loan calculator helps you estimate your monthly payment and total interest cost based on the amount you plan to borrow, the interest rate, and how long you want to pay it back. It can also help you determine if a personal loan is the right option for your goals.
The first input is the loan amount. This can be the purchase price or a down payment on a mortgage or car purchase. Some loans, like balloon loans, do not require routine payments during their lifetime and are paid off in one lump sum at maturity.
If you are comparing offers from several lenders, try entering different configurations of the loan term, interest rate, and loan amount to see how each would impact your monthly payment. Be sure to consider the overall cost of the loan, including other fees and charges that may be applied to it.
You can calculate the principal and interest of a loan by using a simple online loan calculator. The calculator displays the results instantly and eliminates the possibility of error with manual calculators. The loan calculator is easy to use and free to download. It is available 24/7. The loan calculator can also calculate the interest earned on an investment.
Interest Rate
The principal loan amount, the interest rate, and the loan term determine the money you pay to borrow. Loan calculators can help you estimate your monthly and total interest payments based on the information you enter into the calculator. The calculator may also display a payment schedule.
Generally speaking, the more you borrow, the higher the interest rate. The interest rate is a percentage of the principal loan amount and can be simple or compound. With simple interest, you only pay on the original balance; with compound interest, you also pay on any accumulated interest.
Many loans are amortized with a monthly payment that includes principal and interest. This is especially true of mortgages, auto loans, and student loans. Other loans, however, are not amortized and only have a single lump sum due at maturity. These types of loans are often called balloon loans.
Loan calculators are valuable tools that help you understand the costs of different borrowing scenarios. Using the calculator, you can experiment with various combinations of loan amount, interest rates, and terms to see how they impact your monthly payment.
Term
A personal loan is an unsecured lump-sum loan that you repay at a fixed interest rate over time. These loans are typically used to consolidate debt, pay off higher-interest credit cards, make home improvements, fund a vacation, or buy a car. Our calculators can help you estimate your monthly payments based on the amount you wish to borrow, how long you have to repay it, and other factors such as your income, debt-to-income ratio, and credit score.
Whether you’re looking for a mortgage, auto, or student loan calculator, our calculators can show you what your potential payments could look like over the life of your loan. They’ll also consider any possible interest rate changes over your loan term.
Our calculators use a compounding formula to calculate your payment and total interest. This is how most primary loan types, such as mortgages and auto loans, are calculated. The formula accounts for the original principal and the accumulated interest from previous periods.
After entering the information above, the calculator will display your estimated monthly payment and an amortization schedule that shows how each payment is allocated between principal and interest. The calculator will also show the expected payoff date of your loan and how much cash you’ll receive when it’s paid off.
Payment
Loan calculators are valuable tools for figuring out how much to borrow or estimating your monthly payments. Loans can help you meet financial goals such as home ownership, advancing your career, or funding other needs, such as paying off higher-interest debt or vacationing.
Loans come in two forms: secured and unsecured. Secured loans are backed by an asset such as a home or auto, and you must pledge that asset to the lender in the event of nonpayment. Unsecured loans are typically based on your credit history and income, and have higher interest rates than secured loans. You can use loan calculators to compare lenders and rates and find the right one.
Many loan calculators include a feature that calculates the amount of your monthly payment, including principal and interest. This is called an amortization schedule, and it shows you how much each month will go toward paying down the loan principal and how much will be used for interest. Some calculators may also be able to estimate your total interest costs if the loan is a variable rate or has compounding.
Depending on the type of loan you are looking for, it may be helpful to visit the specific calculator pages for Mortgage Calculator, Auto Loan Calculator, Student Loan Calculator, and Personal Loan Calculator for more detailed information or calculations. The estimated monthly payments calculated by this calculator do not represent a loan application or offer from Navy Federal and are subject to credit approval.
