Free online loan calculator to find the repayment plan, total cost and total interest
Regardless of your reasons for taking out a loan, our loan calculator is intended to help you calculate the monthly repayment amounts you will have to make. We can help you balance the benefits and risks of taking out a personal loan more confidently.
Figuring out Loan Repayments
Everyone seems flooded with personal loan ads these days, and immediate credit seems more accessible than ever. With personal loans, you can receive a big sum of money upfront and pay the lender back over time. You'll need to determine a repayment plan for it, which our tool will assist you with. If you find any difficulty in using the tool initially, you can also use the sample values available in the tool.
We aim to make our user's experience as convenient as we can. The tool is really simple to use as it requires input values for the Total Loan Amount that you are receiving, Loan Term in Months, and Interest Rate per Year. Upon providing these, the tool calculates the exact Monthly payment figures, Total Cost of Loan, and Total Interest you will pay over that time.
How to use the Loan Calculator tool?
You can easily launch our Loan Calculator directly from our home page under the Calculator section. It can help you devise a loan repayment plan without having to rely on any third party application. Initially, you can get to know the tool by using the sample values for calculations. It can be done as:
Using the Sample Values:
Before getting into the step by step guide, let us make it easy by filling in the sample values for you.
- Open our Loan Calculator's webpage. You 'll see three boxes with labels 'Loan Amount', 'Loan Term in Months' and 'Interest Rate per year'. Beneath the boxes, there are three buttons with blue, green and orange colors, titled 'Calculate', 'Sample' and 'Reset' respectively.
- Click on the Sample button. It will fill the three fields with sample values of $100000, 12 months loan term and 6 % interest rate per year.
- Then click on the Calculate button to find out the loan repayment figures for these sample values.
Using your Actual values:
Follow up with the instructions provided to figure out the loan repayment plan for your sum of money:
- Enter Loan Amount:
- When you 'll open our Loan Calculator's webpage, you 'll see the top box with the label 'Loan Amount'. In that field, enter the amount of money that you are hoping to get as a loan. There is a $ sign alongside that field, which indicates that the amount to be entered should be in dollars.
- If you want to change the entered amount, you can use the up and down arrows at the right side of this top box. Up arrow will increase the amount by unity, and the down arrow will decrease it by unity. You can also change the amount by deleting the previously written value and then re-entering the new value.
- Enter Loan Term (in months):
- Among the three boxes, you 'll see the middle box with the label 'Loan Term in Months'. In that field, enter the number of months that you are intending to borrow the money for. If you have a rough idea of the number of years, for instance, 5 years, you can multiply that by 12 to get the number of months, which is 60 in this case.
- If you want to change the entered number of months, you can use the up and down arrows at the right side of this middle box. Up arrow will increase the number by unity, and the down arrow will decrease it by unity. You can also change the number of months by deleting the previously written number and then re-entering the new number.
- Enter Interest Rate (per year):
- Among the three boxes, you 'll see the bottom box with the label 'Interest Rate Per Year'. In that field, enter the yearly interest rate at which you are borrowing the money. There is a % sign alongside that field, which indicates that interest rate should be entered accordingly.
- If you want to change the interest rate, you can use the up and down arrows at the right side of this bottom box. Up arrow will increase the interest rate by unity, and the down arrow will decrease it by unity. You can also change the interest rate by deleting the previously written value and then re-entering the new rate.
- Once you have entered the values for all three fields, next you have to click on the Calculate button. You 'll get the Loan repayment figures for the entered input values.
- If you wish to change the values, and want to do calculations for some other scenario, you can do so by clicking firstly on the Reset button, it will clear all the fields. Then you can repeat the same procedure to get the new repayment figures.
What Loan-repayment figures you 'll get?
Upon clicking the Calculate button after entering the Loan Amount, Loan Term in months, and Interest Rate per year, a new table will appear with the figures for loan repayment plan. It includes your regular monthly payment figure, your total cost of loan, and the total interest you will pay. There are various loan types, and each one carries with it a unique balance of risk and reward as well as varying interest rates. By giving you a general idea of potential loan payback amounts, you can then feel better informed when taking out a personal loan.
Here are some common questions that you may have about our Loan Calculator
Q: Is this Loan Calculator based on Simple Interest or Compound Interest?
A: Our Loan Calculator is based on simple interest. Calculation of compound interest requires the compounding interval as well, which we haven't used for calculation.
Q: How do you calculate the monthly payments on a loan?
A: The formula used for calculation of monthly payment is :
Monthly payment = [ r + r / ( (1+r) ^ months -1) ] x Total loan amount.
Where r is interest rate /(100*12).
Q: How do you calculate the total cost of loan?
A: The total cost of loan includes the interest to be paid, and it is calculated by multiplying the monthly payment by the total number of months.
Q: What is the formula for Compound Interest?
A: The formula used for calculation of Compound Interest is :
A = P* ( 1 + r / n ) ^ (n* t)
Where: A is the future value of the investment or loan, P = the principal investment or loan amount, r is the interest rate (decimal), n is the number of times that interest is compounded per period, and t is the number of periods the money is invested for.
Q: How do you calculate the total interest?
A: Total interest paid is calculated by subtracting the loan amount from the total cost of loan actually paid.
Why should you use our tool?
Our Loan Calculator tool has been created to make your life easier. In a matter of milliseconds, our tool will calculate the loan repayment figures according to your repayment plan. You can also use the sample values if you are not sure about how the tool would work in the beginning. Not only this, but our tool is absolutely free and does not demand creating an account. We have covered your possible questions regarding the tool as well, so you get complete guidance related to the tool.