This **loan calculator** allows you to perform calculations for your loan repayments in three different ways. First one is when you have to pay back a certain amount periodically. The second is when you have to pay a lump sum at the end of loan term. And, the last one is when you have to pay an already fixed lump sum amount when your loan term ends. So, whichever **loan calculator** you want to use, just go for it and calculate your loan payments and interest.

What Is Loan?

Loan, basically, refers to a contract that is signed between a lender and a borrower that grants some amount to the borrower. The borrower is also obligated to pay that amount back in future. Most of the loans can be categorized into any of these three categories.

**1.** Fixed payments made periodically till the maturity of the loan

**2.** Single lump sum payment made at maturity of the loan

**3.** A fixed predetermined lump sum payment made at maturity of the loan

Let's discover these options in detail and try to find out what our loan calculator can do for you

Fixed Payments Made Periodically Till The Maturity Of The Loan

This category effectively covers quite a few of consumer loans available today. In these loans, there are regular payments which are uniformly amortized over the lifetime of the loan. There are periodic payments made towards the principal amount and interest till the loan is paid off in full. This category covers most of the familiar loan types including mortgages, student loans, personal loans and car loans. When we talk about loans in our routine life it refers to this particular type.

This **loan calculator** also allows you to perform calculations for this type of loans. For this, you have to input values for loan amount, loan term, rate of interest, payback and compounding options. The calculator will give you the yearly payments that you'll have to make, total of your yearly payments and the interest that will be accrued on your loan.

Single Lump Sum Payment Made At Maturity Of The Loan

There are some short-term or commercial loans that fall in this particular category. Unlike the amortization that happens in the first category, these loans require single, big lump sum payment that is due when the loan gets mature. Although this lump sum amount covers for single interest payment for your entire loan, it's not the simple interest rather it is calculated by compounding interest over the term of your loan.

So, this **loan calculator** also gives you an option to calculate your single lump sum amount that will be due at the end of your loan term as your loan gets mature. Besides, it gives you the total interest accrued as well. The calculator requires you to enter the amount borrowed, term of your loan, rate of interest and the compounding period to perform these calculations.

Fixed Predetermined Lump Sum Payment Made At Maturity Of The Loan

Finally, there is this third and last option. Probably, the only option you will find for such loans is in form of the bonds. Technically speaking, bonds are also a type of loan. However, they work a bit differently than the conventional loans. The major difference is that the payment that you have to make at the time of maturity is already determined. This is how it is different from the second option described above as well. The par value or face value of the bond is an amount which is paid at the time of its maturity, with an assumption that bond does not default. This term is basically used as when the bonds were issued first their amount used to be printed on their face or front side. Even though the importance of face value is nothing more than denoting amount to be received when the bond reaches maturity, it may also be helpful in calculation of the coupon interest payments.

Using this last **loan calculator of ours is pretty simple as well. You again have to enter those same values i.e. loan amount, term, rate of interest and the compounding period. As you hit the calculate button, the calculator gives you the amount that you'll get at the start of the loan and total interest that you'll have to bear on this loan. **

So, use the loan calculator as you like and determine the variables for desired type of loan. All the three calculators that you will find on this loan calculator page work independently of the others. So, you can use one specific to your needs.