# Loan Calculator – Loan Payment & Interest Calculator

Are you stuck in a situation for a loan or interest calculation? Check out this Loan Calculator. Also, it has features like the Loan Payment Calculator and Loan Interest Calculator.

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#### Amortization Schedule Calculation

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Related ## Loan Calculator

People are fond of pleasure. So, to fulfill their pleasures people need money. Sometimes they have money and sometimes they don’t. For this situation, they need to wait till money arrangments. Therefore, Loan is the only option if you don’t want to wait.

For example, every people wish to have own home. So, they take a loan. Even more, people take a car loan for ease of traveling. Also, we may take loans for startups, business purposes or to expand the business. In short, the loan is a financial term.

The loan is defined as lending money by someone to another one. There are two types of loans.

###### 2) Institutional

When we get a loan from our relation it’s called a relational loan. In relational loans, we only pay back the amount of money we lend.

In the institutional loan, we need to pay some interest as well. Interest can be said as part of extra money that is paid along with the principal. Use this loan interest calculator in that case to do the calculation. Interest is usually taking in some percentage of landed money (principal). That means the amount paid back by us is more than we lend. And for that, we developed this Loan calculator or Loan Payment Calculator. Loan Payment Calculator is easy to use and free of cost. Also, you can access anytime to do the calculation.

There are three types of Loan calculators. The first calculator is using to calculate the loan amount we need to pay. We can call that a Loan Payment Calculator. The second calculator can be used to compare the different interest rates on the same principle. That is known as Loan Interest Calculator. And lastly third is using to calculate the paycheck that we need to sign each month.

### Types of Personal Loan

1. Secured loan: In this loan borrower gives some assets to the lender. This asset ensures that if a lender is somehow unable to pay. Then all his assets would become lenders. This type of loan is for a long period. The interest is much lower in this type of loan. The benefit of this loan is you can borrow more money for long terms. Generally, home loans are a type of secured loan.
2. Unsecured loan: This loan does not need a borrower’s assets. But, the loan money is less and the interest rate is higher than secured loans.

## Loan Payment & Interest Calculator

It is using to calculate the total money we need to pay back to the bank. Also, it gives us the data of interest that is paid along with the principal. In the loan calculator, we calculate by using principal, interest rate and time to return all dues.

#### How to calculate the loan interest?

###### 1) There is an easy formula to calculate interest on the loan.
Formula: E = P . r(1+r)n / ((1+r)n-1)

Where,
E is the equated monthly installment or simply EMI.
P is the principal amount of loan amount.
r is the rate of interest.
And n is the loan duration in months.

###### 2) By simply putting values on the formula we get loan interest per month. Then multiplying by the number of months to EMI.

For example, a person borrows \$100,000 from a bank at 10% of annual interest. The loan is for 10 years.

Then,
The interest rate per month would be 10/12 = 0.8333.
Number of months is 10 x 12 = 120.
And time EMI = 100000 x 0.8333(1 + 0.8333120)/ ((1+0.8333)120-1) = \$1321.51
Total payable is = 1321.51 x 120 = \$‭158,581.2‬

Hence \$‭158,581.2 is the total amount to be paid. And \$58,581 is the interest for 10 years.

Interest savings calculator: Using this calculator we can compare different companies, according to their interest rates and also how much we can save by using suitable rates. In addition, we can find interest differences between different rates.

#### How it Works?

1. Just calculate the interest at one rate.
2. Then interest at the comparison rate.
3. After that calculate the difference of both rates.

For example, we need to calculate at principal \$100000, at 10% of annual interest. And the other rat is 9% of the annual rate.

The interest saving calculation:

At 10%,
EMI = \$1321 and
Interest = \$58520

At 9%
EMI = \$1266 and
Interest = \$51920
So, the saving at 9% is of \$6600.

## Amortizing Schedule Calculator

This calculator is very important for monthly use. This works simple but its result is very important in our daily life. This simply divides the payable amount to be paid at once. There are different types of amortizing schedule.

1. Straight-line amortizing schedule: In this type of amortization, the amount of installment decreases each time. It is arranged in such a manner that the principal played each time is the same. As interest decreases each time, so the amount of interest also decreases. Hence the installment amount decreases.
2. Mortgage style amortization: In this type, the installment is constant. That means all over the period creditor have pays the same amount of money each time.
3. Bullet amortization: In this amortization, creditor pays all at once. This is also calculated as the compound interest rate.

#### How does Mortgage Calculator Work?

In this Loan Calculator, we use mortgage calculation.

1. It works on the this formula: E = P . r(1+r)n / ((1+r) n-1).
2. Just put the given values in the formula and you get the E value.
3. The EMI that you get is the same all over the period.

#### Uses of Loan Calculator

• To calculate personal loans, we can use the loan payment calculator.
• If we get a home loan we need a loan interest calculator. So, we may know the time period in between we need to pay. Even more, we can know the interest that we need to pay.
• Institutional firms borrow money from people. Mainly they get work from borrowed money. They give some part of the profit to the Debtor. To calculate that part, we need a loan interest calculator.
• Companies get money from banks. Bank charges interest in their given money. Therefore, you can use this calculator in this case.
• In the back times, people get fooled by lenders. The lenders show more money according to their account. To stop these frauds, we can use a loan calculator.
• To calculate personal income statement. If any person is in debt and wants to make his monthly financial statement. He needs to pay according to the amortizing schedule calculation.
• CA has to manage many accounts. Like any company, firm, personal, or even for himself or his family. To calculate loan debts their monthly installments without late, or being as a productive person he can use a loan calculator.