Free Online Loan Calculator (simple)

While you may be familiar with the concept of an online loan calculator, let’s walk through it.

A loan calculator is a tool that allows you to figure out your monthly payment for a loan. It takes into account the principal loan amount, the annual interest rate, and the loan term (usually in years) to calculate the monthly payment. The principal is the original loan amount, while the interest is the cost of borrowing, expressed as a percentage of the principal. The loan term is the length of time the borrower has to repay the loan. The calculator uses these three inputs to compute how much you’ll need to pay each month to fully repay the loan by the end of the term.

An important part of the loan calculator is the amortization schedule. Amortization is the process of paying off a debt over time through regular payments. The schedule lists each payment over the course of the loan term and breaks down how much of each payment goes towards principal and how much goes towards interest. In the early stages of a loan, a larger portion of each payment is typically allocated towards interest, with a smaller amount reducing the principal balance. As the loan matures, this balance shifts, and more of each payment goes towards paying down the principal. The schedule also shows the remaining loan balance after each payment, demonstrating how the loan balance decreases over time.

How To Use Our Online Loan Calculator

1

Enter your loan details

Fill in the fields with your loan information. Input the total loan amount in the "Loan Amount" field, the annual interest rate (in percentage, without the '%' sign) in the "Interest Rate" field, and the term of the loan in years in the "Loan Term" field.

2

Calculate

After inputting your loan details, click the "Calculate" button to perform the calculation. The calculator will compute the monthly payment amount and the total interest you'll pay over the course of the loan.

3

Review your results and amortization schedule

The calculator will display your monthly payment and total interest under the form. Beneath this, an amortization schedule will appear, listing each payment month by month. This schedule will show how much of each payment goes towards the principal and how much is interest. It also shows your remaining loan balance after each payment. This schedule allows you to see how your loan will be paid off over time and how much interest accumulates.

Loan Calculator




Month Principal Interest Total Payment Remaining Balance