Loan Calculator
Calculate your loan payments, total interest, and total cost
Loan Payment Calculator
Understanding Loan Calculations
When you take a loan, you pay back the principal amount plus interest over a specified period. Understanding how loans work helps you make better financial decisions.
Key Loan Components:
- Principal: The original amount you borrow
- Interest Rate: The cost of borrowing money
- Term: The length of time to repay the loan
- Monthly Payment: Fixed amount paid each month
Loan Comparison Tips:
- Compare APR (Annual Percentage Rate) not just interest rates
- Consider the total cost of the loan, not just monthly payments
- Look for prepayment penalties
- Check for origination fees and other charges
Common Loan Types:
- Personal Loans: Unsecured, higher rates
- Auto Loans: Secured by vehicle
- Home Loans: Secured by property
- Student Loans: Education financing
- Business Loans: Commercial financing
- Payday Loans: Short-term, high-cost