Calculate loan payments, total interest, amortization schedule, and visualize repayment.
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This Loan Calculator helps borrowers understand how different loan structures work, including amortized loans, deferred payment loans, and bonds. It is useful for estimating repayments, interest costs, and total loan obligations.
Amortized loans are the most common type of consumer loans. They involve regular payments made over the life of the loan, where each payment includes both principal and interest.
Popular examples include mortgages, auto loans, student loans, and personal loans. In everyday usage, the word “loan” usually refers to an amortized loan.
Deferred payment loans require a single lump-sum payment of both principal and interest at the end of the loan term.
These loans are commonly used for short-term or commercial borrowing. Balloon loans are a variation where smaller payments may be made before maturity.
Bonds are a special form of loan where borrowers repay a fixed face value when the bond matures.
Coupon bonds pay interest periodically, while zero-coupon bonds are sold at a discount and pay the full face value at maturity. This calculator focuses on zero-coupon bond calculations.
Longer loan terms usually result in lower monthly payments, but higher total interest costs over time.
Secured loans require collateral, such as a house or vehicle. If the borrower defaults, the lender can seize the collateral.
Mortgages and auto loans are the most common secured loans. These loans typically offer lower interest rates and higher approval chances.
Unsecured loans do not require collateral. Approval is based on creditworthiness using factors like income, credit history, and debt levels.
Examples include credit cards, personal loans, and student loans. These loans generally have higher interest rates and shorter terms.
An amortized loan is repaid through regular payments that include both principal and interest.
It is a loan where the full payment is made at maturity instead of monthly installments.
Secured loans require collateral, while unsecured loans rely on creditworthiness.
Secured loans generally have lower interest rates due to reduced lender risk.
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