# Loan Calculator

Since you may have happened upon this loan calculator to calculate a monthly payment, I'll cut to the chase. You'll only need to enter three numbers, and __you can leave the other dozen or so options untouched__.

Here's all you need to do.

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

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

There you have it. Now you have what you need.

This calculator though offers users so much more. Spend a few minutes with it, and you'll see. More below

#### Info...

VERY IMPORTANT - You __must__ enter a 0 if you want a value calculated. Some users have been frustrated by this. They want to know why the calculator does not just recalculate a payment if they have changed the loan amount, interest rate or term.

This is because we want the calculator to be able to create an amortization schedule using whatever parameters you want to use. 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!

ABOUT DATES - This calculator now allows irregular length first periods. That is, the calculator calculates the exact amount of interest due even when the initial period is shorter or longer than the other scheduled periods. __This will result in payment amounts as well as interest charges that do not match other calculators__. If you want to match other calculators then set the "Loan Date" and "1st Payment Date" 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 "1st Payment Date" should be set to June 15th, that is __IF__ you want a conventional interest calculation. See the end of the "Help" text for some more details.

Of course, you can always leave the dates set as they are when the calculator loads.

## Much More Than a Payment Calculator

Since the calculator will solve for multiple unknowns, it can easily be used to answer the following questions:

- How much can I borrow?
- What would my payment be?
- What is the lending rate?
- How long will it take to pay off my loan?
- What date is my loan paid off?
- NEW - what is the impact of extra payments?

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

Hopefully, you'll find this loan calculator as well as all the financial calculators on this site to be useful tools. Why not take another sip of your favorite beverage and explore for a few minutes? Start by checking out The Reading Room. Here you'll find a half dozen articles, written by professionals, about money.

## 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."

## Sonjay says:

Hi,

I am trying to figure out the true “value” or interest rate of this loan. I loan my friend $20,000. He returns the money as follows:

90 days later: $1250

180 days later: $1250

270 days later: $1250

1 year later: $21,250 (another $1250 + the original $20k).

SO – after 1 year, I am making $5000 on a $20000 loan. That sounds like 25%, but since he is holding the original $20k for the entire year, is that really 25% returns?

Appreciate your insight.

S

## Karl says:

First, congratulations on having a friend that pays you back. 🙂

What you are looking for is a "Rate-of-Return" calculation.

You can use this Internal Rate of Return calculator

You’ll find that the IRR will be a bit more than 25% due receiving some payments before the year-end.

The text with the calculator will give you some background. You’ll need to pay attention to the negative entries vs the positive amount entries.

## Dennis Guth says:

I have been using your free Loan Calculators for years.

They have been very accurate and help me greatly.

Thank you very much.

## Karl says:

You’re very welcome Dennis. Glad to hear they are helpful.

## Robert Bercaw says:

I used your calculator to determine a payment schedule on a 3 year contract for deed with 30 year amortization and balloon payment. It is an excellent tool and was easily understood by the buyer.

I am currently considering whether I could use the calculator for a variable rate longer term loan (maybe 15 years) when the 3 year term is finished in about 14 months. I was considering updating loan interest rate every 3 years or so with some formula that would be a factor of 10 year treasury rate or CPI. Assume I would make first calculation for first 3 years rate using 15 year amortization; but only showing 3 years payments. Then at end of 3 years recalculate with updated interest rate with a 12 year amortization; and so forth every 3 years with updated rate and reduced amortization years. Sounds a little complicated right now. Any thoughts on this?

Thanks for the online calculator. It is really appreciated.

Bob

## Karl says:

Bob,

The loan calculator won’t do what you need, but there is a free calculator on this site that you can use for adjustable rate loans.

Please try the Ultimate Financial Calculator. 🙂

If you try it, scroll down the page to the tutorial section. Check out tutorial #1 to get started. Then see this tutorial for a specific example:

This calculator is very flexible. It could be used to replace nearly every calculator on this site. It does take a while to get use to though. However, if you regularly run into loans (or investments) cash flows that have an irregular component, this is the calculator to use and it should be worth your time to learn.

Naturally, if you have any questions, just ask.

## Dennis Roberts says:

What calculator should I use where periodic increases in principal can be added to an existing schedule and an updated schedule calculated from that date forward under terms of original schedule, and without changing the schedule prior to that date.

For example, I have a 10 year owner finance loan where the borrower is supposed to pay property taxes before delinquency. If he does not pay, then I pay and add the amount I paid to the loan principal due at that time. I need future P&I payments calculated based on the new principal from date paid and automatically updated into the original schedule until the end of term of the original loan.

## Karl says:

Use this financial calculator. It will allow the user to make any payment on any date and there can be additional loan amounts added to the loan balance as time goes on.

Once on that page, scroll down, and you’ll see a number of tutorials. Check out #1 for an overview of how the calculator works.

I would also look at this tutorial:

## Dennis Roberts says:

OK, thanks for pointing me in the right direction. Your calculator does the job I need. If my borrower wants to add property taxes as extra principal to the original loan, then I will buy the C-Value! program so I can save my work. Do you have any more details on how the 3 computer license works? For example, does an uninstall of the program from an older computer recover one of the licenses so you can reinstall the program on a newer computer? Are there any periodic renewal fees? Are program updates, if any, freely available?

## Karl says:

Glad to hear the calculator does what you need, Dennis.

An uninstall does free up a license.

There are no ongoing fees.

If and when there is a major version update, then there is a fee to purchase the update – price determined on a case by case basis. Maintenance and bug fixes are free.

## Ivan says:

HI,

Firstable I want to thank you for your wonderful work and great calculators! I wish to use this calculator on my site, but I want to translate it in Bulgarian before that. I can send you the translation after to add it to the plugin if you want.

How can I do that?

I couldn’t find any .pot or .po and .mo file in it…

I will be glade if you can help me with info how to translate it.

All the best,

Ivan

## Karl says:

Thank you, Ivan. Glad to hear you feel it may be of use.

As to the translation, this is something that you can do, at least to a large extent.

Please go to this folder:

\fc-loan-calculator\en

And find this file:

`calculator.gui.php`

You’ll see all the English text that the user sees on the calculator.

The harder part to translate will be the report and dropdowns (“daily”, “weekly”, etc).

Those are found in the file located here:

`\fc-loan-calculator\src`

`common.LIB.gpl.js`

`schedules_and_charts.gpl.js`

After you translate those (or have a programmer do it if you’re not a programmer), you’ll have to use the Google JavaScript Closure compiler to minify the code again and more it to the "min" folder.

## Rich says:

Is there a way to hide “Payment Method?” drop down? It’s confusing to some people as they’re expecting it to say “check” or “ACH” but it’s “End of Period” or “Beginning of Period.”

We’re just using this as an estimator so it doesn’t have to be 100% accurate. But I would love to just hide that.

## Karl says:

The user has no control over what’s displayed since the calculator is being served from this website. But when you say "we’re using this…" who’s the "we?" Do you have a website? You can put this calculator on your website if your site is a WordPress site.

Loan calculator plugin for WordPress.

## Rob Mackenzie says:

Thanks for this great loan calculator!

I have a question for you. I’m borrowing $20k from a friend to invest in a business, and paying it back over 3 years. The first 12 months will be interest-only payments, with the first interest + principal payment starting in month 13 and carrying on for 24 months until fully re-paid.

When I used the calculator to set up the first payment to happen in 12 months, the interest for year one works out to just over $1000. Shouldn’t it be $1600? I’m confused–can you help me understand? Perhaps I’m not inputting the details correctly.

## Karl says:

You’re welcome.

And I have some questions for you. 🙂

What is the interest rate for this loan?

The first payment is due one year after the loan date not one month?

Either way, if you have an initial period of interest only payments, followed by a series of principal plus interest payments, then there is another calculator that would be better to use. Please see Ultimate Financial Calculator

This calculator will create very detailed payment schedules and the user can change loan terms (such as interest only vs P&I) on any date.

Once on the calculator’s page, scroll down and look at the tutorials. Read #1 for an overview. Then there is a tutorial specifically about initial interest only payments followed by P&I payments with an example.

## Darlene Espinoza says:

What an awesome website to have as a resource. Thank you.

My question is about a 30 year amortized mortgage .

Mortgage calculators seem to assume that customers will pay their mortgage on the first of each month. Most lenders allow a grace period of 15 days before adding late fees so some people pay their mortgage on the 15th.

If a person pays their mortgage on the 15th of each month instead of the 1st of the month -would their loan accrue more interest?

Example: $500,000 Loan Amount at 4.5% amortized over 30 years with payment made on the first of each month results in $412,032.30 Interest Charges and $912,032.30 in total payments made over 30 years.

I keep thinking that paying my mortgage on the 15th of the month will actually cost me more since mortgage interest accrues on the previous months balance.

How can I calculate this to find out?

## Karl says:

Thank you!

Good question. You should be able to use this calculator. Let’s say the loan proceeds are advanced on Aug. 1 (loan date) and as you say normally the first payment is due Sept 1. Instead set the 1st payment date to Sept. 15 and then this calculator will assume each payment thereafter will be paid on the 15th.

If you want a little finer control, you can use this calculator as it lets the user set each payment to any date. You can also have 0 payments just to show the accrued interest. What you might want to do is to set a 0 payment on Sept 1 (using the above example) so you have control over how the interest gets accrued. Scroll down this calculator’s page. There are a lot of tutorials that will get you started.

## stephen baker says:

Hi Karl,

I need to calculate a loan where the first 4 months are at 23.9% Apr with daily compounding, and then the further 68 months at 13.5%, again daily compounding.

Is there a calculator that could help me do this please?

Kind regards

Steve

## Karl says:

Hi Stephen,

Yes. Please see this financial calculator. It allows the user to adjust interest rates on any date. Scroll down the page for a list of tutorials. One is for adjustable rates. Also, check out tutorial #1 for an overview.

## stephen baker says:

Hi Karl,

Thank you for your quick reply.

These are FANTASTIC calculators and save lots of time and effort working these figures out.

I will read it and I am sure i will get the answers i require.

Thank you again

Kind regards

Steve

## Tamara says:

My granddaughter bought her first car. When she applied for her loan, I explained how paying a bit extra on principal every month would save her in interest and paying the car off sooner. I could tell she didn’t quite understand what I was talking about. Now, with your financial calculator it gives me a black and white printout of numbers proving the method. Thanks!!!

## Karl says:

You’re very welcome.

Personally, I think calculators are great educational tools.

## Jo Orvik says:

Hello,

The loan calculator was working great but then got stuck on 12 years and won’t budge. I’ve closed the webpage and opened it again and nothing has worked. It seems some numbers do work but not the 14 I want. Thanks for any insight you can give me to try.

Jo

## Karl says:

Hi Jo, I don’t see any issues, but that’s not to say there aren’t any. Can you tell me

ALLthe inputs you are using and what you are trying to calculate? Did you reset a value back to "0" before you clicked "Calc?"## Jo says:

Hi Karl,

Some people like me just shouldn’t be around calculators! I found my problem. The reason the payments wouldn’t stretch out to 14 years with a fixed payment schedule is because (drum roll) it actually got paid off in 12 years! Oh my, that took me awhile to see my errant thinking!

Your calculator actually worked fine with the same schedule and a higher interest rate.

Thanks for the quick response.

Sorry I took up your time.

Jo

## Karl says:

Thanks for letting me know.

FYI, if you wanted the loan to have a term lasting a full 14 years, you can set the payment amount to 0 and the calculator will calculate the payment required to have it paid off in 14 years.

Or, you could set the loan amount to 0, leaving the payment at what it was, and it would tell you how much can be borrowed and have it paid back in 14 years.

## Jo says:

Great tips for using the calculator.

Thanks very much.

## Madi says:

Hi,

Are you able to tell me the formula being used to calculate the payment amount?

I’m trying to find the monthly installments for a 25 year $300,000 loan made at 6.2%, compounded semi-annually?

I’m glad this calculator gives the option for compounding but I’m just curious as to how it actually works.

## Karl says:

There are two types of questions I answer. They are, what calculator should I use for a particular calculation and how to use a calculator or a particular feature. Sorry, I don’t answer questions about equations. That’s a bottomless pit.

## Kelly Martin says:

Hello there. I recently sold my business to one of my employees and I am carrying the note for five years. The amount of the business was $250,000. I set this up so that I will only collect the minimum interest that the IRS says for the first year, which is 2.86%, with the rate going up 1% every year for the term of the loan. Here’s the problem. It is a very seasonal business, so I set the monthly payments for the slower months. For example, his first payment on November 1, 2018 was $3500. His December 1 payment is $3000. His payment at the end of December is $4000. This goes on for the entire year, with the highest payment being $5500 in May, June, July, August in September, etc, totaling $50,000 per year before interest. More money to me in the busier months. I have downloaded a number of adjustable rate Excel amortization tables. But that always puts it in 12 equal monthly payments. Is there a way to record these set payment arrangements that he pays each month so that the interest will react accordingly and the table is accurate?

Thank you in advance.

Kelly

## Karl says:

Thanks for your question. You can do what you need to do, but not with this calculator.

Please use the Ultimate Financial Calculator.

Scroll down the page and there are a lot of tutorials.

Read #1 to get started and then read #25 specifically to set up a loan with an irregular payment schedule.

If you have any questions, just ask.

## Michael Hendren says:

I’m using your online Loan Calculator with Payment Schedule and it works really great to help me determine extra payments to pay down auto loan early and reduce interest… I set the option to pay additional payments of $1000 per month eginning on 1-Jan-2019 until the loan is paid off = 19 payments for the initial 60-month loan…

Is there a way to make a 1-time balloon payment of $8000 this month to pay down this loan much sooner and eliminate even much interest?

## Karl says:

Yes, you can do that.

Set "Number of Extra Pmts? (#):" to 1 and pick a date for the single extra payment.

## Michael Hendren says:

Hello Karl,

When I attempted to set “Number of Extra Pmnts (#):” to 1 and pick a date for the single extra payment, it replaces the extra $1000 per month payments that I also want to include starting 1-Jan-2019 until the loan is paid off… It appears that I cannot do both, only one or the other…

## Karl says:

You are correct. This calculator supports one series of extra payments, be that for 1 or until the loan is paid off.

However, you can use the Ultimate Financial Calculator to do what you need. Scroll down the page to the list of tutorials. Read #1 for an overview. Then there are some specifically about extra payments.

If you have any questions, just ask.

## Michael Hendren says:

Thank you for this feedback… I used the Ultimate Financial Calculator to get the desired result but it took many Trial & Error attempts… After I entered all required information and added a One-Time Balloon $8000 pmnt, I had to experiment by changing the number of Monthly minimum $545.88 loan pmnts and the Monthly Extra $1000 loan pmnts to get it almost paid off and added ONE Final loan pmnt to have a Zero Balance… This allowed a 60 month vehicle loan to be paid off in 18 months…

That said, your online calculators are awesome and I appreciate that you make them available to the public… I am not a calculator wiz by any means, but I finally figured out a way to get it done… LOL

## Karl says:

Great! Glad to hear it. Thanks for letting me know.

The UFC definitely takes time to learn how to use.