Home All Calculators About Privacy Contact

Loan Calculator

Calculate loan payments, total interest, amortization schedule, and visualize repayment.


Loan Balance Over Time

Interest vs Principal (First 12 Months)

Loan Calculator – Understand Different Types of Loans & Repayments

This Loan Calculator helps borrowers understand how different loan structures work, including amortized loans, deferred payment loans, and bonds. It is useful for estimating repayments, interest costs, and total loan obligations.

Amortized Loan – Fixed Payments Over Time

Amortized loans are the most common type of consumer loans. They involve regular payments made over the life of the loan, where each payment includes both principal and interest.

Popular examples include mortgages, auto loans, student loans, and personal loans. In everyday usage, the word “loan” usually refers to an amortized loan.

Common Amortized Loan Calculators

Deferred Payment Loan – Lump Sum at Maturity

Deferred payment loans require a single lump-sum payment of both principal and interest at the end of the loan term.

These loans are commonly used for short-term or commercial borrowing. Balloon loans are a variation where smaller payments may be made before maturity.

Bonds – Predetermined Payment at Maturity

Bonds are a special form of loan where borrowers repay a fixed face value when the bond matures.

Coupon bonds pay interest periodically, while zero-coupon bonds are sold at a discount and pay the full face value at maturity. This calculator focuses on zero-coupon bond calculations.

Loan Basics for Borrowers

Longer loan terms usually result in lower monthly payments, but higher total interest costs over time.

Secured Loans

Secured loans require collateral, such as a house or vehicle. If the borrower defaults, the lender can seize the collateral.

Mortgages and auto loans are the most common secured loans. These loans typically offer lower interest rates and higher approval chances.

Unsecured Loans

Unsecured loans do not require collateral. Approval is based on creditworthiness using factors like income, credit history, and debt levels.

Examples include credit cards, personal loans, and student loans. These loans generally have higher interest rates and shorter terms.

Frequently Asked Questions

What is an amortized loan?

An amortized loan is repaid through regular payments that include both principal and interest.

What is a deferred payment loan?

It is a loan where the full payment is made at maturity instead of monthly installments.

What is the difference between secured and unsecured loans?

Secured loans require collateral, while unsecured loans rely on creditworthiness.

Which loan type has lower interest rates?

Secured loans generally have lower interest rates due to reduced lender risk.

Get in Touch

Reach out to us for feedback, suggestions, or support related to our calculators.

🛠️

Bug Reports

Found an issue in any calculator? Let us know so we can fix it quickly.

💡

Feature Suggestions

Have an idea for a new calculator or improvement? We’re listening.

General Questions

Questions about usage, accuracy, or results? Feel free to ask.

🤝

Partnerships

Interested in collaboration or promotion? Contact our team.