# Loan Calculator

## How to Use the Loan Calculator

Calculating a loan payment amount with this calculator is very easy.

- Click clear and enter values for:
- Loan Amount
- Number of Payments (term)
- Annual Interest Rate

- Optionally set the dates.
- Leave Loan Payment Amount set to 0.
- Click either
**"Calc"**or**"Payment Schedule."**

You can leave the other dozen or so options untouched unless you have a specific reason for changing them.

*However, this loan calculator gives users the ability to do a lot more than simple payment calculations*. More below

### Information

### Always enter (and reenter) a 0 for the unknown value.

Note - You __must__ enter a zero if you want a value calculated.

Why not design the calculator to recalculate the last unknown?

Because we want the calculator to be able to create a payment schedule using the loan terms you need. *This behavior is a feature!* After all, there is no such thing as a "correct" loan payment. The payment amount is correct as long as both the lender and debtor agree to it! (If the calculator always recalculated the last unknown, then this feature would not be possible.)

### About the loan origination date (start date) and first payment date.

Important - The first loan payment period is seldom equal to the frequency of other schedule payments. That is, if a loan's payment schedule is monthly, the time from when the loan originates (when the borrower receives the money) until the day the first payment is due will likely not equal one month. The first period will typically be either longer or short than a month.

A longer or shorter first period impacts the interest calculation.

Very few (if any?) online calculators can correctly handle this detail. But if you want accurate interest and payment calculations, you need to be able to independently set the loan origination date and the first payment due date. You can do that on the "Options" tab of this calculator.

Warning - Selecting dates will result in payment amounts as well as interest charges that do not match other calculators.

That's the point!

If you want to match other calculators, then set the "Loan Date" and "First Payment Due" so that the time between them equals one full period as set in "Payment Frequency." Example: If the "Loan Date" is May 15th and the "Payment Frequency" is "Monthly," then the "First Payment Due" should be set to June 15th, that is __IF__ you want a conventional interest calculation.

See "Long Period Options" and "Short Period Options" below for additional details about payment amounts and interest calculations.

Yet keeping it simple - if you only need estimates and not absolute accuracy, you can always leave the dates set as they are when the calculator loads.

## Much More Than a Payment Calculator

### The four values you'll need to set:

- the principal amount borrowed. It does not include interest.*Loan Amount*- the "Payment Frequency" setting impacts the loan's term. For a loan term of five years, if the payment frequency is monthly, you need to enter 60 for the number of payments. (60 months = 5 years)*Number of Payments (term)*- the nominal interest rate. This the quoted interest rate for the loan. (If the lender is quoting anything other than an annual interest rate, you probably should avoid the loan.)*Annual Interest Rate*- the amount that is due on each payment due date.*Payment Amount*

**Set one of the above to 0 if unknown.**

*How much can I borrow?*

- set the loan amount to "0" (zero)
- enter the number of payments
- enter the annual interest rate, and
- enter the desired or expected payment amount
- calculate

*How long will it take to pay a loan off?*

- enter the loan amount
- set the number of payments to "0" (zero)
- enter the annual interest rate, and
- enter the desired or expected payment amount
- calculate

*What interest rate allows me to pay $350 a month?*

- enter the loan amount
- enter the number of payments
- set the annual interest rate to "0" (zero), and
- enter $350 for the payment amount
- calculate.

### Three loan options you most likely don't need to touch.

*Payment Frequency*- set how often payments are scheduled. The calculator supports 11 options, including biweekly (every other week), monthly, and annually. The schedule calculates payment due dates from the first payment due date.*Compounding*- usually, you should set the compounding frequency to be the same as the payment frequency. Doing so results in simple, periodic interest. Setting this option to "Exact/Simple" results in simple, exact day interest.*Amortization Method*- leave this setting set to "normal" unless you have a specific reason for setting it otherwise. For a complete explanation of these options, see Nine Loan Amortization Methods.

### Results - your loan summary

*Total Interest*- assuming the debtor makes the payments as scheduled, this is the interest they will pay over the term of the loan.*Total Prepaid Principal*- this is the total of any extra payments. Note, the total interest saved is reported on the payment schedule.*Total Principal & Interest*- the loan amount plus the total interest paid. Thus the total amount you'll pay for the loan.

### Eleven loan options you may want to tweak.

*Loan Date*- the date the money is available. If the loan is for a vehicle or home, it is the loan's closing date.*First Payment Due*- for leases, it may be the same as the loan date. See "About the loan origination date (start date) and first payment date" above.*Extra Payment Amount*- want to make a single extra payment or series of additional payments? Enter the amount here.*Extra Payments Start*- enter the date you want extra payments to start. The date does not have to align with payment due dates. If you pay a loan monthly and payments are due on the first, you may want to make extra payments on the 15th to align with your pay periods.*Extra Payment Frequency*- set how frequently you'll make additional payments. Want to make extra payments annually when you receive a year-end bonus? This calculator will accommodate such a plan.*Number of Extra Pmts*- enter one or any integer value. If you want to make the extra payments until you pay off the loan, enter "U" for "Unknown."*Days Per Year*- 360/365 days per year option. This setting impacts interest calculations when you set compounding frequency to a day based frequency (daily, exact/simple or continuous)**or**when there are odd days caused by an initial irregular length period.*Rounding Options*- due to payment and interest rounding each pay period (for example, payment or interest might calculate to 345.0457, but a schedule will round the value to 345.05), almost all loan schedules need a final rounding adjustment to bring the balance to "0". A footnote on the payment schedule informs you of the rounding amount.*Long Period Options (odd day interest)*- setting for how interest is shown on the schedule when the initial period is longer than the selected payment frequency.*Short Period Options*- setting for how payments get adjusted when the initial period is shorter than the selected payment frequency.*Fiscal Year-End*- this setting establishes after what month the calculator shows year-end and running totals. This option is to accommodate businesses with fiscal year ends that do not coincide with the calendar year-end.

More details about the settings for odd day and irregular period interest.

### Wrapping Up

On a more general note, I have been discussing with users, details about loans, some structured with unusual features, over several decades. At this point, I believe the loan calculators on this site can create schedules for any **structured settlement loan** that exists. If you have a loan with special requirements, please ask.

## Mary Eileen Gunter says:

Hi, there. I love and am grateful for the loan calculator–but your last commentor was right: “How do I get it”? Right now none of the calculators are showing on my screen–just the text, plus placeholders for the calculators. (I am using Windows 7) I think something went awry???? Mary

## Karl says:

Hello, AccurateCalculators.com is back up and running. I’m sorry for the problems you experienced. An automatically applied update went wrong and it eventually brought down the entier site on Tuesday. Unfortunately, I could not figure out the problem and get it fixed until late Tuesday (eastern time USA). Thank you for reporting the problem.

## Nguyen Quoc Ky says:

Hi Karl,

Your works are awesome. I really love your plugin by its simple.

Currently I am using FC’s Loan Calculator plugin on my wordpress website. I wonder how I can choose the settings for “Amortization Method?” from default to Fixed Principlal?

Thanks,

## Karl says:

The FC Loan Calculator Plugin does not support fixed principal loans. However, the plugin does come with the source code. The website’s programmer could make the modification to add fixed principal calculation.

## D Lowy says:

Your site is very educational.

Thank you!I am trying to true up my car loan. There is difference between the loan paperwork and your calculator. Your calculator is off by $0.50 per payment (lower).

Say the loan closed May 27 and the 1st payment is July 11. I do not pay anything the day the loan closes. So there is interest accumulating from 5/27 till July 11 based on the loan value. I do not see how your calculator is taking that into account.

I did try added the dates on the 2nd tab and the monthly payment amount is always the same.

## Karl says:

You’re welcome!

Assuming monthly payments, since the loan originates on May 27 and the first payment is July 11, we then have a long initial period. On the options tab, there is an option identified as "Long Period Options."e; How is that set? That controls interest.

For me to look at the details of your calculation, it would be best if you copy/past the custom URL below the calculator after a calculation to a comment. This way, I can use it to load the calculator with all your settings and inputs. (You can also save it in a text file to repeat your calculation.)

## Julie says:

This is just what I was looking for!! You have made my day. We are about to undertake vendor finance and was wanting something I could fiddle around with…… including extra payments! This is PERFECT!! Thank you so much! All the banking programs available to the public DON’T give you bells and whistles!

## Karl says:

Hi Julie, Glad to have made your day! Since you are taking on vendor financing, if you ever need to track the actual payments as they are made, you can use this loan payoff calculator.

## Jon Addison says:

no help for me!!

Asking simply Note payoff amount $9635 in one lump sum, after 2 years, 8 mo, 10 days at 3% per annum!!

no site has it!!

can u do it??

## Karl says:

The Ultimate Financial Calculator will do what you need.

On the calculator’s page, scroll down for tutorials if something isn’t clear, ask on that page.

## jennifer hall says:

Do you have an am schedule or the like for when someone is not making the normal payment? We owner financed and the person has not been making the full payment and we need to calculate how much in the arrears they are.

## Karl says:

Yes. What you should try is this loan payoff calculator. It lets users enter payments as they are made, on any date. If you have questions about how it works, you may leave them at the bottom of the page, but the instructions are pretty detailed too.

## Monte Friedman says:

Karl,

Thank you for your reply.

Based upon the following parameters:

Loan Amount: $100,000 Term: 30 years Rate: 4% = $477.42 (Principal & Interest Paid Monthly)

IF we multiply $477.42 X 12 months = $5,729.04 (Principal & Interest Paid Annually)

NEXT: IF we take $5,729.04 and divide it by 52 Weeks: = $110.17 (Principal & Interest Paid Weekly)

What I am attempting to understand is this:

IF the Principal and Interest is applied to the loan every 7th Day, would the Term of the Loan SHORTEN

Even though the Total Dollars Paid over a 365.25 Day (1 Year) Period?

It seems to me that it should because we are reducing Principal on a 7 Day Schedule instead of a Monthly Shedule..

Thank you,

## Monte Friedman says:

Karl,

That should have been,

“Even though the Total Dollars Paid over a 365.25 Day (1 Year) Period are the same.”

## Karl says:

Hi Monte, have you tried the calculator? It will calculate this for you and you should be able to compare the schedules.

That’s a great thing about calculators — they can be used as a teaching tool.

## John Dmochowski says:

We have a small corporation and the stockholders make loans to the company. I would like a program that is on a computer that calculates monthly balances, instead of our paper and pencil method. Does this financial calculator do that?

## Karl says:

I don’t think this is the calculator you’ll want to use. It will calculate a loan balance after a scheduled payment (see the calculator’s amortization schedule), but it assumes the payments are made as scheduled.

I recommend looking at the loan payoff calculator on this site. It’s designed to calculate payments on the actual date paid. Check it out. If you have any questions, just ask.

## Steven Peters says:

I am confused, I have a loan in which the payor makes monthly payments and sporadic and variable amounts of principal payments. I used to use one of your calculators for this. It had a screen in which I could input the date and amount of principal payments and it would recalculate the loan and amortization schedule. Cannot find the calculator, have you discontinued it?

## Karl says:

I think you are looking for the loan payoff calculator.