Simple Loan Calculator

This calculator is used to calculate a simple loan repayment amount for each payment period. It also calculates the total amount to be repaid, interest amount and the effective annual percentage rate. This calculator uses compounding of interest for interest calculation.

This calculator does not have the options to include down payment, extra fee and balloon payment. For such details you can use the Amortized Loan Calculator.

Using Simple Loan Calculator

1. Select the Currency of your choice.
2. Enter the Loan Amount amount (principal amount).
3. Enter the yearly compound Interest Rate in percentage.
4. Select the Payment Period from the drop down.
5. Enter the Loan Term either in years and or months.
6. Finally, press the Calculate Loan button. The periodic payment amount, total interest amount, total payment amount, effective annual percentage rate (EAR), number of payments to do and the pay off date will be calculated and the result will be displayed.

This calculator uses compounding of interest for interest calculation. Based on the compounding of interest, compounding period and the loan period we can find the repayment of loan amount per period.

Formula To Find Loan Periodic Payments

Where:

• A = Repayment of loan amount per period
• P = Loan Amount
• r = Interest Rate per period
• n = Total number of payments or total number of periods

Formula To Find Interest Rate per Period

Where:

• r = Interest rate per period
• i = Nominal annual interest rate
• n = Number of compounding periods / year
• p = Number of payment period / year

• About loan at Wikipedia.
• About compound interest at Wikipedia.