(*) An interest rate reflects the cost you pay each year to borrow money; it does not include fees. An annual percentage rate, or APR, reflects the cost, plus fees. This calculator uses estimated interest rates, so it may not reflect your actual monthly payment once any fees are included.
(*) This calculator is meant for educational purposes only. It calculates estimated monthly payments solely based on the information you provide. The estimated monthly payments generated from the calculator do not constitute an offer from Viecost.
Amortized Loan: Paying Back a Fixed Amount Periodically
Many consumer loans fall into this category of loans that have regular payments that are amortized uniformly over their lifetime. Routine payments are made on principal and interest until the loan reaches maturity (is entirely paid off). Some of the most familiar amortized loans include mortgages, car loans, student loans, and personal loans. The word "loan" will probably refer to this type in everyday conversation, not the type in the second or third calculation. Below are links to calculators related to loans that fall under this category, which can provide more information or allow specific calculations involving each type of loan
Month/Year
Payment amount
Interest paid
Principal paid
Loan balance
Deferred Payment Loan: Paying Back a Lump Sum Due at Maturity
Many commercial loans or short-term loans are in this category. Unlike the first calculation, which is amortized with payments spread uniformly over their lifetimes, these loans have a single, large lump sum due at maturity. Some loans, such as balloon loans, can also have smaller routine payments during their lifetimes, but this calculation only works for loans with a single payment of all principal and interest due at maturity.
Beginning Balance
Interest
Ending Balance
How to use Credit simple loan calculator
Our loan calculator can help you understand the costs of borrowing money and how loan payments may fit into your budget. It takes into account your desired loan amount, repayment term and potential interest rate. You’ll be able to view an estimated monthly payment, as well as the amortization schedule, which provides a breakdown of the principal and interest you may pay each month.
Keep in mind that this loan payment calculator only gives you an estimate, based on the information you provide. Loan fees like prepayment penalty or origination fee could increase your costs or reduce the loan funds you receive. This loan payment calculator also doesn’t account for additional mortgage-related costs, like homeowners insurance or property taxes, that could affect your monthly mortgage payment.
Average interest rates for personal loans
Loan term
2017
2018
2019
2020
24 months
10.13%
10.32%
10.32%
9.51%
Source: Federal Reserve
Average interest rates for student loans
Undergraduate borrowers
Graduate/professional borrowers
Parent/graduate/professional student
Direct Subsidized Loans and Direct Unsubsidized Loans
Direct Unsubsidized Loans
Direct PLUS Loans
2.75%
4.3%
5.3%
Source: Studentaid.gov. (Loans disbursed on or after July 1, 2020, and before July 1, 2021.)
What should you consider before taking out a loan $0?
As you estimate your payments, keep in mind that doing some planning before you apply for a loan can pay off in the long run.
Set a budget
If you need or want to take out a loan, it’s a good idea to figure out how much space you have in your monthly budget. You don’t want to take on a payment that will be a struggle to make each month. Additionally, lenders may look at your debt-to-income ratio to determine whether you qualify for a loan and — if so — how much they may lend you.
Decide if you want to put up collateral
Secured loans often have lower interest rates than unsecured loans, but they come with a risk: You’re putting up collateral such as your car or home in exchange. That means if you default on your loan, the lender could take your property.
Compare loan offers
It’s a good idea to shop around and compare loan offers from multiple lenders. You can check your estimated rate by applying for prequalification, if possible. Getting prequalified gives you an idea of what your loan rate and loan terms could be and without a hard inquiry on your credit reports.
Just remember that if you decide to officially apply for a loan you prequalify for, your rate and terms could still change, and the lender will likely perform a hard credit inquiry, which can negatively affect your credit scores.
