Loan Calculator
Loan Calculator - a browser-based finance utility.
Browser tool
About Loan Calculator
A monthly payment figure on its own hides most of what a loan costs. This works out the payment and then shows the whole schedule, so you can see how the split between interest and principal shifts over the term and what an overpayment actually saves. Free online, no login, no data retained. The schedule is produced in the page from figures you control.
How to use it
- Enter the amount, rate and termThe rate is the annual nominal rate; the calculator converts it to a monthly one.
- Read the scheduleEvery row is one payment, with the interest, the principal and the balance remaining. Early payments are mostly interest, which is why the balance falls slowly at first.
- Try an overpaymentAdding a regular extra amount goes straight to principal and shortens the term. The saving is usually larger than people expect, because it removes the interest that would have accrued on that balance for the rest of the loan.
What it does not do
- This assumes a fixed rate and equal monthly payments. A variable rate, an interest-only period, a fee rolled into the balance or a payment holiday all change the outcome and none are modelled.
- Lenders differ in rounding and in day-count conventions, so a real statement may differ from this by a few units of currency over a long term.
- It is arithmetic on the numbers you enter, not financial advice, and it does not know your tax position or what a lender will actually offer you.
Questions people ask
- Why is the final payment different from the others?
- Because each month is rounded to the cent, the tiny differences accumulate over the term. The last payment is whatever clears the remaining balance exactly, so it is usually a few cents off the others.
- Does paying extra early save more than paying extra later?
- Yes, substantially. An overpayment removes interest on that amount for every remaining month, so the earlier it lands the more months it cancels.
- Is APR the same as the interest rate?
- No. APR is intended to include fees and charges as well as interest, so it is usually higher than the nominal rate. Enter the nominal rate here; comparing two APRs is the right way to compare two offers.
Questions about ToolsVerse itself — privacy, cost, what happens to your files — are answered in the frequently asked questions.
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