Loan Amount Calculator

What are the loan payment calculator and loan calculation formula? In this article, we will learn more about loan term calculators, note calculators, and PMT calculators.

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Total Loan Amount

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Many more responsibilities are attached to loans than merely the money borrowed from your lender. Each month's loan payment also includes interest on the borrowing money price, and paying back a loan over time affects each instalment's amount.

The loan payment calculator is available to help you calculate these challenging figures. Several loan calculators are available, including personal and student loans and vehicle loans. You may also learn how much equity you have in your house, which might be helpful if you want to take out a line of credit.

Did you know?

The APR ranges from 1 year to 18 months, depending on the card. This method may help you avoid hefty interest payments on a significant purchase.

Loan Payment Calculator

A loan payment calculator calculates your interest rate, payment each month, the number of months to pay off your loan, and the total money you owe. Change the loan amount, the length of the repayment term, and the interest rate to see how it affects your monthly payment.

You can also build and print an amortisation plan for your loan to view your payments each month throughout the lifespan of your debt. An amortisation plan with a loan calculation formula includes the following parameters: 

  • The loan's total amount: The principle is the amount of money owing on the loan
  • The interest rate: Nominal annual interest rate, often known as the declared interest rate, of the loan. Annual nominal interest rate
  • The month's number: It is the total no. of payments required to clear the debt.
  • Monthly payments: The monthly calculator of the payment due date specifies the amount paid toward the loan.
  • Compounding: Using this payment calculator, you assume that interest compounding occurs every month, like payments. So, using this method, you can calculate how much you'll pay each month on any loan.

Repayment of the Loan

Personal loans require you to pay not just the principal but also interest and any other fees. However, it is possible to break down the costs of your loan in this manner:

  • When deposited into your account, the amount of money you borrow is known as the principal.
  • A lender's fee for loaning you money is known as interest. Any upfront costs, including origination fees, are included in the annual percentage rate (APR). This implies that you'll pay the same amount each month regardless of how long it takes to pay off your loans. To get the best interest rate possible, you need to have a good credit score and history.
  • Fees: Loan origination fees, funds fees which are more petite, late fees, and so on, are only some of the extra costs of borrowing money.

What you pay each month is based on your loan balance and the length of time you have left to pay. First, however, it would help to remember your interest rate and any associated expenses for each loan payment.

Also Read: How to Apply for the Best Business Loan in India? - Types of Govt. Loan Schemes

Loan Calculator Formula

The loan term calculator includes your principal loan amount, interest rate, and loan term. As a result, the principal of your loan and any interest or fees due throughout the repayment term are spread out equally across the loan duration.

If you have a loan with a fixed interest rate, your monthly payments will be set by the interest rate and the loan calculator you need to utilise. Amortisation loans, which include interest and principal payments, are also available.

For loan calculations, the loan calculator formula for the PV of an ordinary annuity:

Present Value=PMTi[1−1(1+i)n]

Loan Amount

To compute the amount of debt, use the PMT calculator with the loan formula. 


Find the number of months


The monthly payment formula


To calculate the interest rate on loan: use the Newton-Raphson method

Types of Loans

Interest-only Loans

Taking up an interest-only loan means paying the interest for a specific time. However, the principal you owe will stay the same for this term. A monthly loan's interest and fees are easy to calculate with a monthly payment calculator.

The borrowed money plus interest will be due when your interest-only loan period expires. In addition, most interest-only loans become amortising once their initial term ends, requiring regular monthly payments on the principal and interest due. Calculate them using the note calculator.

Interest on amortising loans and the principal are allocated to a percentage of your monthly payment. For example, taking out a car loan is a long-term loan repaid in instalments. Use a term loan calculator to calculate the amount.

Divide the number of monthly payments you'll be making over 12 months and get your interest rate. By multiplying your new balance by the initial amount of your loan, you should get the whole amount you requested when you applied.

Monthly Payment Calculator

The requirements for different types of loans vary widely.

An Online Tool for Calculating Personal Loans

The total monthly payment on your loan account is calculated using a personal loan calculator, which factors the principal balance, interest rate, and length of the payback period.

You may use this calculator to figure out how more principle payments will alter the duration of time of your loan and how much interest to pay. Still, you should consult a more extensive loan payment calculator if you need more specific figures.

Loan Repayment Calculator for Higher Education

A student loan percentage calculator may determine specific information about student loan payments while determining some statistics regarding student loan payback. Enter your loan amount and interest rate into this calculator and experiment with different loan periods. Additional monthly or yearly payments and one-time lump sums may be included to see how they affect your total loan repayment.

An Online Equity Loan Calculator

Using a home equity loan calculator is the first step in determining how much money you may borrow from your home equity account. Information like your home's estimated value, the amount of the mortgage, and your credit score are all necessary. Home equity is an essential factor in how much money you may borrow from your home's equity; however, your credit score will also affect how much money you can borrow.

Auto Loan Calculator 

Before committing to a loan at a dealership, do your homework and use an auto loan calculator to help you better understand the loan terms. Using this calculator, you have to enter information such as the amount of money you'd want to borrow, the length of the repayment period, and the interest rate. Since personal and home equity loans often have more prolonged periods, you have less time to consider other loan options and potentially save money in interest charges if you choose a shorter-term auto loan.

Also Read: Understanding EPF Loan - A Comprehensive Guide

How to Save Money on Interest Payments?

Borrowing money comes with a hefty price tag, the interest rate. To put it another way, if your interest rate is lower, you'll have to pay less than the money you have borrowed. Even though you may not be able to lower your interest rate, there are methods in which you may be able to save money during the life of the loan. So how to find the interest rate on a loan? Get a head start on the competition by preparing ahead of time. Then, when you know how much money you're eligible for without having to file a complete loan application, you may shop around for the best interest rates. Then, having done your homework and calculate interest on the loan, you will be able to choose the lender that offers you the most beneficial repayment terms and fewest costs.

Your loan interest might reduce by more loan instalments. One loan payment is due each month, and that's all you have to worry about. These funds are split 50/50 between paying interest and adding it to your principal balance. Always make extra principal payments when you have the chance. Take care of your debts as soon as possible. Then, if you can afford to make larger monthly payments or pay off the remainder of the loan in one go, you'll save money throughout the life of the loan. To continue, ensure there is no penalty for paying in advance. However, to avoid paying interest at a much higher rate than you were used to, it's best to pay off your card's balance before the promotional period ends.


Learn to calculate your monthly instalment payments, and don't forget about them now that the math is a little easier. One way to ensure that your loan payments or the instalments are made on the period each month is to enrol in auto-pay with your lender or bank. Then, before the due date for your loan payment, you can schedule payments to be debited from your bank account on a particular day each month. In addition, maintaining a good credit rating with your loans is essential to enhance your credit score, prevent default and get out of debt faster.
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Frequently Asked Questions

What is the method for figuring up how much a borrower will pay each month?

To figure out your monthly mortgage payment, divide the yearly interest rate or interest rate by twelve, and you'll get the monthly interest rate.

What is a note payment?

Long-term obligations, such as a company's notes payable, show how much money it owes to banks and other financial institutions.

For what purpose is a loan calculated?

When calculating your interest rate, divide it by the number of payments or instalments you will make throughout the year.

Which formula to determine the cost of a loan?

Multiply the principle by the yearly interest rate.