How to Use the Loan Calculator
Choose the value to calculate, enter the other three core loan values, and then set payment and compounding frequency. Optional fees, recurring overpayments and one-time payments make the repayment estimate more realistic.
Loan Payment Formula
For a standard amortizing loan, Payment = Principal × r ÷ (1 − (1 + r)⁻ⁿ), where r is the effective rate per payment and n is the number of payments. Zero-interest loans divide principal evenly across the term.
Understanding the Amortization Schedule
Every row separates the payment into interest and principal. Interest is calculated from the balance at the start of the period, so early payments typically contain more interest and later payments contain more principal.
Nominal Rate and Compounding
The entered annual rate is treated as a nominal rate with the selected compounding frequency. The calculator converts it to an equivalent periodic rate before calculating payments. Use the definitions in your loan documents for an accurate comparison.
Loan Calculator FAQ
How is a loan payment calculated?
A level-payment loan uses the principal, periodic interest rate and number of payments. Each payment first covers interest on the outstanding balance and then reduces principal.
Can this calculator solve for the interest rate?
Yes. Enter the principal, payment and term, then choose Interest rate. The calculator uses a numerical search to find the annual nominal rate consistent with those cash flows.
What does compounding frequency change?
Compounding frequency controls how the stated annual rate is converted into an effective rate for each payment period. It should match the loan agreement.
How do extra payments affect a loan?
Extra payments reduce principal. This normally shortens the payoff period and reduces later interest, assuming the lender applies the payment immediately without a penalty.
Does the calculator include fees?
Entered fees are shown separately and included in total repayment and the simple effective-cost percentage. They are not automatically financed unless included in the loan amount.
Is this loan calculator free?
Yes. It runs in your browser without signup and supports schedules, charts, print and PDF export.
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Disclaimer: This calculator provides planning estimates only. Actual lender calculations, fees, payment timing and contractual terms may differ.