Simply input details about your loan such as the interest rate, amount borrowed, any down payment and the loan term. The calculator will the calculate details of your loan such as the required payment amount and a number of graphs showing financial details of your loan through time.
You can also see an amortization schedule of your loans payments by clicking the “Create Amortization Schedule” button which will produce an amortization table in a separate, printable window.
Many of the inputs and outputs of the calculator are fairly self explanatory. Here we will provide information on some of the more detailed functionality of the calculator:
The calculator will graph financial metrics through time. One of these graphs shows the total principal remaining as well as the cumulative interest payments.
You can see that early in the loan, the total principal decreases slowly while the cumulative interest payments increases at a faster rate than during the latter part of the loan.
This is due to the greater interest accumulating on the larger balance and therefore, a greater portion of your regular payment is going to payoff this interest in the initial part of the loan.
It is for this reason that making a few larger payments early in the life of the loan can have a strong effect on reducing the total interest you will pay over the course of the loan.
You can also see a graph of the principal and interest components of you regular payments through time. You can see very clearly here what we were talking about above where initially, your payments are paying a large interest component and a smaller principal component while this situation reverses as the loan matures and your remaining principal decreases.
The calculator can also produce an amortization schedule of you loans payments by clicking the “Create Amortization Schedule” button. This table is produced in a separate window to allow easy printing of the amortization schedule.
The amortization schedule will show for each payment, the total payment, how much of the payment was off the principal verse the interest of the loan and the total remaining balance on the loan.
The table will then total your interest payments so you can see the total interest paid through the course of the loan.
Please understand that it is not possible for a calculator such as this to take account of all the financial factors that may affect the costs associated with you loan. For example, different countries may have different tax implications and there may be various fees associated with different loans.
As such, the calculator should only be used to get an initial idea of the costs associated with a loan rather than being used as financial advice. For proper financial advice, you should consult a financial professional who can look at your situation and the specific details of your loan in more detail.