## 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.

### Info...

**File save and open are new beta test features.**If you happen to get a different calculated result, do not assume that this calculator is making an error. Most likely, the problem is with the new file load feature. Please check that all settings got loaded as expected.

### 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

### Loan Calculator Help...

This calculator will solve for any one of four possible unknowns: "Amount of Loan", "Total Scheduled Periods" (term), "Annual Interest Rate" or the "Periodic Payment".

Enter a '0' (zero) for one unknown value.

The term (duration) of the loan is a function of the "Total Scheduled Periods" and the "Payment Frequency". If the loan is calling for monthly payments and the term is four years, then enter 48 for the "Total Scheduled Periods". If the payments are made quarterly and the term is ten years, then enter 40 for the "Total Scheduled Periods".

The "Amortization Method" should be set to "Normal" (level payments) unless you have a specific reason to set it to another method. &Fixed Principal" causes the amount allocated to principal to be the same each period which result in decreasing payments.

If the terms of the loan call for a 0% interest rate, then the "Amortization Method" must be set to "No Interest," otherwise entering a zero for "Annual Interest Rate?" will cause the calculator to calculate an interest rate. Selecting "No Interest," also lets the user set the payment amount to "0" to tell the calculator to calculate it.

When the first period, the period of time between the "loan date" and the "first payment date" is longer than one full period, there will be interest due for the "extra days". This is known as "odd day interest." Example: if the "loan date" is March 24 and the "first payment date" is May 1, then there are 8 odd days of interest - March 24th to April 1st. How the odd day interest is calculated and collected is controlled with the "Long Period Options." By default, the odd days interest is shown being paid on the loan date.

Conversely, if the time between the "loan date" and "first payment date" is less than the payment period set, then the first period is said to be a "short initial period" and the first payment will be reduced due to less interest being owed. How the payment amount and interest is calculated for a short period is determined by the "Short Period Options."

## Maher Hawash says:

Great work. I am trying to figure out why is there no difference in the calculated payment amount when I chose 360 vs 365 days per year when I request an Am schedule. I used $100,000, 6%, 36 periods and tried both 360 and 365 years options (clearing the payment amount to zero each time), and I am getting the same payment amount, and the same Am Schedule.

What am I missing

## Karl says:

Thank you!

The

days per yearsetting will impact the interest calculation if either (1) the compounding is set to daily or exact, or if there are odd initial days.No doubt you have compounding set to a monthly or weekly option. In that case, the interest is calculated as some fraction of a year (monthly = 1/12 of a year). Days do not come into play. This means, for a $100,000, balance it doesn’t matter if the first month is February or March, the total interest accrued will be the same regardless of the number of days.

By "odd initial days", I mean that when the time between the loan date and first payment date is not equal to the payment frequency, then the odd day’s interest is also impacted by the setting.

## Thomas says:

I like it , it is the only calculator I have found that lets me put in the payment amount and it figures how many payments.

Two comments tho :

When you finish putting in your information , it does not automatically go to the part to calculate, or whatever, Have to click on some orange bar and it brings up the things you can click on it to do , but it over writes other stuff on the page.

is there an IOS app for this ?

## Karl says:

Hello Thomas, I’m glad you found the loan calculator useful.

As to the issue you mentioned, I assume you are using a cell phone? What you describe should not be happening. The calculator does not include an orange bar. I just started allowing ads to be displayed on this site this week. My guess is, you are seeing an ad or part of an ad covering up some critical part of the calculator. I’ll review the updated layout on a cell phone this weekend and ask that obstructing ads be removed.

No, there is no iOS version of the calculator. Normally, the web version should be as well laid out as a native iOS app.

By the way, if you are using an iPhone and need a printed loan scheduled and have a wireless printer within range, it’s possible to print directly from the phone. The technology for connecting to the printer works well. I’ve tried it with a few different models of iPhones. Thought I would mention it in case you’ve never tried it.

## Ibrah says:

How does this loan calculator work ?

If i took a loan of $ 200,000 paid on monthly basis at a rate of 10% !

i.e Interest per month 0.10*200,000 = 20,000/mo.

but the calculator shows monthly interest contribution is $ 15,000.

How does this calculator work ?

## Karl says:

The calculator requires you to enter an annual interest rate. Is the interest rate for this loan really 10% per month (very roughly about 120% per year)?

Also, the dates you enter and compounding frequency are important.

## Ibrah says:

Yes, 120% per year.

Then why when calculating manually, the monthly interest is different ?

That’s 0.10*200,000 = 20,000per month ( manually ).

By calculator, it amounts to 15,000 monthly.

## Karl says:

When the loan balance equals 200,000 and the loan date is May 1 and the first payment date is June 1, with a 120% annual interest rate, the first interest payment using this calculator is 20,000.

## Grant Kincaid says:

Thank you! I have been looking for a complex Bi-weekly calculator that would tell me how much to pay to pay off a loan by giving a set amount of time (or bi-weekly payments). Many other calculators what to know my payment, loan dates, extra payment, blah blah blah.

Now I know how much to pay Bi-weekly to have my car loan paid off by January 2020!! This is perfect. Already bookmarked!

## Karl says:

Great Grant! Glad you found it useful. Good luck in getting that car loan paid off.

## Bobby says:

I’m trying to find the difference between a typical mortgage loan paid out monthly versus paid out weekly. I can’t enter number of payments as 1560 (52×30). Am I missing a step or something?

## Karl says:

Wow, I wrote the first version of this calculator for the Apple IIe back in 1983 and I never had anyone ask for the ability to enter so many payments. As they say, there’s always something new. 🙂 This particular calculator is limited to 999 payments.

However, all is not loss. Please try this calculator. It should accommodate your needs. What you’ll do is make the first row a loan row. Then the 2nd row can be 999 weekly payments. Then follow that with a 3rd row for the balance of weekly payments with the date starting month after the 2nd row’s end date.

## Gordon says:

Will this calculator allow for a fixed annual principal payment, plus the accrued interest for the year? It makes the total payment different each year, but the annual principal reduction payment is constant until the note is repaid.

## Karl says:

Are the payments annual? Or are you saying, the interest is paid monthly and there’s one month that includes principal and interest? I’m not sure I understand your requirement. However, please try under "Amortization Method" the "Fixed Principal" option. You can then select annual payments and each year will be the same principal amount (Or if you meant monthly payments and the principal will add up to the same amount each year, then this option will work for that too.)

If that’s not what you want, please provide more details.

## Monte Friedman says:

Hi Karl,

Thank you for this venue. I too am interested in comparing a weekly amortization schedule vs other intervals such as monthly… “IF” we have a Loan Amount of $100,000 at 4% interest on a 30 Year Term (amortization) the monthly Principal & Interest Payment is $477.42…. “IF” this Loan Originates 08/01/2019 in would terminate 07/31/2049…….. I am trying to see “IF” I am able to pay $110.175 Every Week, would that shorten the Term (length of time) that the Loan would be paid off.

Thank you again.

## Karl says:

Thank you for your comment.

Without running the numbers, my guess is, there’s no savings. I think you would need to try weekly payments of $119.36 (monthly payment divided by 4). That should result in some savings since it ends up equivalent to 13 monthly payments in a year.

If you are interested in comparing monthly vs biweekly in one schedule, and reading more about this, you can try this biweekly payment calculator.

## Gordon says:

Karl,

Thanks for your prompt reply.

The payments are annual and include a fixed principal payment plus the interest that has accrued during that year. Each subsequent year will have the same amount of principal payment, but the amount of interest accruing will be less each year as the principal declines.

## Karl says:

You’re welcome.

Then this calculator should do exactly what you need. Set the amortization method to fixed principal and the payment frequency to annual.

Did you try that by any chance?

## Disgruntled auditor working on a Sunday says:

Your website used to be phenomenal. I could just enter data and get the schedule I needed immediately. Now there’s so much fluff and crap all over the place that it’s almost more efficient to calculate it myself.

Please go back to the way it was. Nobody cares about the history of how the calculator came to be. We came here to get data.

Also, if you can just show the schedule instead of making us jump through hoops to get it, that’d be great.

## Karl says:

Nothing has changed with respect to what a user must do to create a payment schedule in over 2 decades. Enter 3 known values, enter a 0 for an unknown value (i.e. loan amount, term, rate or payment amount) and then click on payment schedule button.

Done.

Ignore everything else or not – it’s up to you.

## Sally Harding says:

How do I get and use this calculator?

## Karl says:

What do you mean by "how do I get?" It’s right on this page for all to use.

There is a lot written here about how to use it. There’s no point in repeating it. If something is not clear, I’m happy to answer specific questions.

## Trey Jones says:

People are asking how to use this and get it because it’s not here anymore. This page is blank except for comments.

## Karl says:

Hello, financial-calculators.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.

## Karl says:

At the time you wrote, I had not been aware that the website had been automatically updated with a security fix. This "fix" broke some calculators when used from some locations as early as Sunday and eventually brought the entire website down on Tuesday morning eastern time (USA). I have fixed the problem, so if you still need a calculator for loan analysis, you should see it now on the page.

## 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, financial-calculators.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.