Loan Calculator
An amortized loan has fixed payments paid periodically until loan maturity. Use this for mortgages, auto loans, student loans, or personal loans.
Results:
| Period | Payment | Principal | Interest | Balance |
|---|
A deferred payment loan has a single lump sum paid at loan maturity. Use this for commercial loans or short-term loans.
Results:
| Period | Interest | Balance |
|---|
A bond has a predetermined lump sum paid at loan maturity. Use this to compute the initial value of a bond/loan based on a predetermined face value.
Results:
| Period | Interest | Balance |
|---|
Amortized Loan: Fixed Amount Paid 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.
Deferred Payment Loan: Single Lump Sum Due at Loan 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.
Bond: Predetermined Lump Sum Paid at Loan Maturity
This kind of loan is rarely made except in the form of bonds. Technically, bonds operate differently from more conventional loans in that borrowers make a predetermined payment at maturity. The face, or par value of a bond, is the amount paid by the issuer (borrower) when the bond matures, assuming the borrower doesn’t default.