Online loan calculator - loan calculation (calculate monthly payment and loan interest) + table

Loan calculatorallows you to calculate the monthly loan payment,displaying monthly amount of payment, commission and overpayment in money and percentage terms, as well as display a table and schedule for repayment of loan debt.

When choosing a loan program, most customers pay attention only to the interest rate and term. In fact, there are many more parameters that affect the size of payments and overpayments. To take them all into account, you need to know the special financial formulas and be able to use them. If there is no special education, it helps online loan calculator.

Before applying for a loan, it is recommended to calculate the monthly loan payment. The online loan calculator or, in other words, the loan calculator will cope with this task.

1. Loan calculation using the online calculator - principle of calculation and repayment scheme

To understand the principle of calculations, it is necessary to learn a number of concepts:

Loan body - this is the amount of money that a credit institution gives to the borrower in cash or by transfer to a card or account. In this case, interest and commissions are not taken into account. It is the loan body that is specified in the contract and is used in the preparation of the payment schedule.
Interest - the amount of money due to the bank for the use of the loan.
Payment schedule - This is a document that is an annex to the contract. The dates and amounts of the loan installments are indicated here.

It is also important to consider which circuitry is used. to repay a loan. It depends on how the monthly income will be calculated, as well as interest distributed. Traditionally, one of two schemes is used:

Repayment by annuity payments. This method involves making equal monthly payments over the entire loan term. At the same time, the percentage of interest and the principal amount of the debt as part of this payment is constantly changing. At the initial stage, the majority of the payment is interest. Gradually, the share of the main debt in the installment grows and by the end of the term becomes dominant. The advantage of such a scheme is that in case of early repayment, the amount of interest paid will decrease.
Differentiated method. In this case, the amount of payments is maximum at the initial stage of repayment. Gradually, the amount of the contribution is reduced. Calculation for each month is made separately. In this case, the total amount of debt is divided equally between all periods of repayment, and interest is calculated based on the balance of the debt for each month.

It is far from always that the borrower has the opportunity to choose a cancellation scheme. In most cases, this is not provided for consumer loans. Many lenders try to arrange loans on the terms of repayment by annuity payments. The reason for this is that the bank’s profit with this approach is higher. However, some banks give customers the right to choose when applying for a mortgage or car loan.

If you can choose, it is important to consider the following features:

The amount of monthly income. If a differential payment scheme is used, this indicator should be greater than with annuity payments by about 25%.
The possibility of full or partial early cancellation. If an annuity scheme is used, it is most advantageous to extinguish at the beginning of the term. The later the cancellation, the less will be the savings. Using the differential method, early repayments are effective at any time.

Differential payments cancellation is advisable in some cases:

a loan is issued for a large amount for a long period;
high risk of dismissal or disability;
there is a desire to save or repay a loan ahead of schedule.

Annuity payments are beneficial:

when it is not possible to make large monthly payments at the initial stage of cancellation;
a small loan is issued for a short period;
the borrower prefers to plan the family budget, taking into account equal monthly payments;
there is no intention of full cancellation ahead of schedule.

In any case, you should first study the options offered by different banks. To compare the size of the overpayment, it is advisable to use a specialized online loan calculator that accurately calculates the monthly loan payments.

2. Loan calculator online - calculate the monthly loan payment

When choosing the optimal loan program, the size of the monthly payment is of great importance. This indicator allows us to understand what the financial burden on the borrower will be.

To calculate the monthly loan payment, Today not necessary go to the bank branch. It is enough to use a special online loan calculator. For calculation, the following parameters will be required: loan amount, rate, term, as well as interest calculation frequency.

3. Loan amount calculator

Often, the borrower needs to determine the maximum loan amount that he can repay from his income. The presented calculator calculates based on the maximum possible monthly payment, loan conditions: interest rate, term, frequency of interest calculation. This does not take into account other paid loans.

Experts recommend setting a monthly payment level of no more than 30-40% from income received. If this indicator is greater, it is likely that banks will refuse to grant loans.

4. Calculator for the number of loan payments

When applying for a loan, many banks specify how long the borrower will be satisfied. Not every customer can imagine how long the extinguishment will be optimal for him.

In order to answer a similar question without problems, it is worthwhile to pre-calculate the number of payments. To do this, it is enough to decide what should be loan amount, payment, bids. In addition, indicate interest calculation frequency.

After that, it remains to click the calculate button. The result will be the number of monthly payments.

5. Credit balance calculator

If the borrower wants to repay the loan ahead of schedule, he will need to at least approximately imagine what amount of money he will have to prepare. If during the cancellation there were delays and early payments, you will have to contact the bank. If such situations did not arise, there is no point in wasting time: it is enough to use the presented calculator.

The following data is entered into the calculation form: amount of credit, amount of monthly payments, rate, interest calculation frequencyas well as quantity contributions already made. Ultimately, the borrower will find out how much he needs to deposit funds for full repayment.

6. How to calculate loan interest - loan interest calculator 🗒

When applying for any loan, you will have to return not only the amount received, but also interest. At their core, they represent the borrower's fee for using the lender's money. It turns out that they are the profit of the credit institution and the overpayment of the client.

Traditionally, a loan payment consists of 2 parts: the first goes to pay off the principal amount of the debt, the second - to pay off interest.

Before proceeding with the calculation of interest on a loan, it is important to carefully study the basic conditions offered by the bank.

The main parameters are the following:

Principal amount of debt. This amount is included in the loan agreement. Before deciding how much to borrow, it is important to carefully evaluate your own capabilities and analyze possible changes in life circumstances.
Loan term. This indicator has a great influence not only on the size of monthly payments, but also on the amount of interest. The longer the term, the higher they will be, and vice versa.
Frequency of Payments. Often, the lender gives the borrower the right to choose the frequency of payment. Extinguishing can be done once a week, for 14 days or per month. First of all, the choice should be determined in accordance with the frequency of receipt of financial resources. The more payments a borrower makes per month, the more he will be able to save. However, not everyone can repay a loan more than once a month.
Payment amount. It is important to understand: when making payments, not all of the amount goes to pay off the main debt. First of all, part of the payment goes to pay interest. Only the remaining amount goes to repay the main debt. If there is a possibility of partial early repayment, the more funds the borrower makes, the greater part of the debt will be repaid. Accordingly, in such a situation, the amount of overpayment is reduced.
Interest rate. When calculating interest on a loan, it is important to use the base annual percentage. For this purpose, it makes no sense to introduce an effective rate into the calculations, since it takes into account not only interest, but also all available commissions and other payments. Therefore, if you use this particular rate in your calculations, the result will be unreliable: more than the real amount.

For the calculation of interest is of great importance that they are charged on the remaining amount of debt. Manually making such calculations happens not easy. Moreover, due to rounding, as well as commonplace errors, a significant discrepancy may arise with the real situation.

To calculate the size of interest is also important and type of loan received. So, it is typical for a mortgage and car loan that at first the borrower repays only interest. Only after a few years the payment of the main debt begins.

In the case of obtaining a credit card, the borrower is faced with the requirement of the lender to make monthly small minimum payments only. However, for a profitable and quick cancellation, large amounts must be paid. The payments required by the bank lead to the fact that the debt practically does not decrease, and the interest is huge.

Take into account all the above factors yourself quite difficult. Therefore, in the absence of financial education, it is better to use a special loan interest calculator to calculate interest rates.

7. Loan payment calculation calculator 2 times a month 🗓

Most borrowers make every effort to minimize the overpayment on the loan received. There are many ways that can significantly reduce the cost of loans. One of them involves making payments once every two weeks. With this payment scheme, the number of payments increases.

If contributions are made once a month, a total of 12 payments per year will be paid. If the payment amount is divided into two parts and paid once every two weeks, 13 contributions will be made per year. Thus, it turns out that the borrower will pay one payment more per year.

On the one hand, this will not significantly affect the financial burden. On the other hand, if the contract is drawn up for a large number of years, such a payment scheme will help significantly reduce the loan term, as well as overpayment. Moreover, practice shows that it is easier for a borrower to allocate a smaller amount from the family budget twice a month than to make a full payment once.

The presented calculator based on only 3 indicators (loan amount, interest rate, as well as credit term) will allow not only to calculate the size of payments for making once a month and once every 2 weeks, but also to compare the amount of overpayment for these two cancellation schemes.