This **loan calculator** figures your monthly payment, total interest paid and generates as well an amortization schedule for your mortgage, auto or student loan. Everything there is to know on how to deal with your repayment plan is explained below the form.

## How does the loan calculator with amortization schedule work?

This *finance* tool takes account of a fixed-interest rate, allows bi-monthly, weekly, monthly, quarterly, semi-annual or annual payment frequency in order to detail your repayment plan no matter of the loan type. It considers the following values that should be provided:

- Loan amount which is money you want to borrow.
- Term meaning the time period you choose to pay back the principal plus the interest for the money you owe.
- Annual interest rate which is the cost of the money you have to pay to the lender.
- Payment frequency that can be from weekly, monthly to annually. It impacts the regular payment level and the interest paid.
- Assumed start date which is the estimated date to make the first payment;
- Generate amortization schedule option.

Its algorithm uses the *compound interest formula* to determine all the important figures an individual would be interested in. Apart from the detailed payment plan it presents, this *loan calculator* returns the summary consisting in the information provided below:

- Regular payment meaning the value you agree to pay with the desired frequency over the term specified;
- Amount borrowed which is the same with the principal you have to pay back;
- Total paid which equals the principal plus the interest paid;
- Total interest paid by the borrower to the lender;
- Loan term in months;
- Estimated payoff date when you will be debt free.

There are multiple loan types such as home mortgage, personal loan, student or auto loan and for all of them this web form may be a solution to analyze and simulate the level you can afford or to figure out how much you will pay for.

## Example of a result

An individual who takes a loan of $100,000 at an interest rate of 4.5%, over 10 years with a monthly payment frequency starting December 2014 will get the following results:

Loan Details:

■** Monthly payment: $1,036.38**

■ Loan amount: $100,000.00

■** Total Paid: $124,366.09**

■** Total Interest Paid: $24,366.09**

■ Loan term: 120 months

■ Annual Interest rate: 4.50 %

■ Payment frequency: Monthly

■** Payoff date: November, 2024**

## What is an amortization schedule?

An amortization schedule is a detailed repayment plan which presents the chart of the obligations to be honored. It can be either on an early or monthly basis depending on the request. It is usually attached to the agreement signed between the two parties and has an important role in case of the borrower as this is the schedule that should be followed strictly. By going through such graph you can easily observe how the principal and interest owed decrease over time.

## Choose the right loan plan…

Once you’ve passed the eligibility criteria of the bank (which in many cases is a stop- phase) you should think about what means to choose the right loan plan for you and how important is to act according to your needs. Here’s a list with few things you should take care of when choosing the right loan plan:

- First borrow the optimal amount of money: not more than you actually need for your plan, but neither less than you might need.

- Search for the loan offer that ensure the lowest interest rate.

- Choose the right term to payout your debt: not greater than actually you can afford to pay because this way you lose some in interest, but neither don’t be too optimistic by setting up a too short period because you may face a default in case something wrong happens.

- Don’t be that optimistic and choose the right regular payment frequency.

- Take account of all the fees, costs and charges you may have to pay.

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