Calculate your loan payments, total interest, and amortization schedule for various types of loans.
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A loan calculator helps you understand the true cost of borrowing money by calculating your monthly payments, total interest, and amortization schedule. Different types of loans have different characteristics, interest rates, and terms.
For a $20,000 personal loan at 7.5% interest for 3 years:
Your monthly payment would be $622.75
You would pay $2,419.00 in interest over the life of the loan
The total cost of the loan would be $22,419.00
Loan payments typically consist of two components:
In the early stages of a loan, a larger portion of your payment goes toward interest. As you continue making payments, the portion allocated to principal increases.
• Personal Loans: Unsecured loans for various purposes, typically with fixed interest rates and terms of 1-7 years
• Auto Loans: Secured loans for vehicle purchases, typically with terms of 3-7 years
• Home Loans: Mortgages secured by real estate, with terms typically ranging from 15-30 years
• Student Loans: Loans for education expenses, often with flexible repayment options and terms
Understanding your loan terms and amortization schedule can help you make informed financial decisions and potentially save money by making extra payments toward your principal.
The monthly loan payment is calculated using:
Where:
M = Monthly payment
P = Principal loan amount
r = Monthly interest rate (annual rate ÷ 12)
n = Total number of payments (loan term in years × 12)
APR (Annual Percentage Rate): The total cost of borrowing, including interest and fees, expressed as a yearly percentage
Amortization: The process of paying off a loan through regular payments
Principal: The original amount borrowed
Interest: The cost of borrowing money
Term: The length of time you have to repay the loan
• Make extra payments toward principal
• Consider a shorter loan term if affordable
• Shop around for the best interest rates
• Improve your credit score before applying
• Consider refinancing if rates drop significantly