Loan Calculator
Calculate payments and interest for different types of loans, including amortized loans, deferred payment loans, and bonds. Understand loan structures and view detailed repayment schedules.
Loan Calculator
Types of Loans
Amortized Loan
Amortized loans are paid off in equal installments over time. Each payment consists of both principal and interest, with earlier payments having a higher proportion of interest and later payments having more principal.
$$\text{月供} = P \times \frac{r(1+r)^n}{(1+r)^n-1}$$
- P = Principal loan amount
- r = Monthly interest rate (annual rate divided by 12)
- n = Number of payments (term in years multiplied by 12)
Deferred Payment Loan
In a deferred payment loan, the borrower pays a single lump sum at maturity that includes both the principal and accumulated interest. Interest compounds over the loan term.
$$\text{到期应付金额} = P(1+r)^n$$
Bond
A bond is a fixed-income security that represents a loan made by an investor to a borrower. The borrower (usually a company or government) pays a predetermined amount (face value) at maturity.
How to Use the Loan Calculator
- Select the type of loan you want to calculate: Amortized Loan, Deferred Payment, or Bond.
- Enter the loan amount, term in years (and months if applicable), and annual interest rate.
- Choose how often interest is compounded (monthly or annually) and, for amortized loans, select the payment frequency.
- Click the Calculate button to view your results, including payment amounts, interest costs, and amortization schedules.
Tips for Getting the Best Loan Terms
Maintain Good Credit
A higher credit score often leads to lower interest rates. Check your credit report for errors and take steps to improve your score before applying for a loan.
Make a Larger Down Payment
If possible, make a larger down payment. This reduces the loan amount, resulting in lower interest costs over the life of the loan.
Compare Multiple Loan Offers
Don't accept the first loan you're offered. Shop around with different lenders to find the best interest rates and terms.
Read the Fine Print
Understand all fees, penalties, and terms associated with the loan. Look for prepayment penalties or other hidden costs.
Frequently Asked Questions
What is the difference between simple and compound interest?
Simple interest is calculated only on the principal amount, while compound interest is calculated on both the principal and accumulated interest. Most loans use compound interest.
How can I pay off my loan faster?
You can pay off your loan faster by making extra payments toward the principal, making biweekly instead of monthly payments, or refinancing to a shorter term with a lower interest rate.
What factors affect my loan interest rate?
Factors that affect your interest rate include your credit score, debt-to-income ratio, loan amount, loan term, type of loan, and current market rates.
Is it better to get a longer or shorter loan term?
A shorter loan term typically means higher monthly payments but less interest paid overall. A longer term means lower monthly payments but more interest over the life of the loan. Choose based on your budget and financial goals.