How to Use the Loan Calculator
- Select your preferred currency (USD, EUR, GBP, or VND) and interest calculation method.
- Enter the Loan Amount, Annual Interest Rate (%), and Loan Term (Months).
- Review your estimated Monthly Payment, Total Interest, and principal-to-interest ratio bar.
- Open the Monthly Amortization Schedule or export it as a
.csvspreadsheet.
Reducing Balance vs. Flat Interest Comparison
| Feature | Reducing Balance (Amortized) | Flat Interest Rate |
|---|---|---|
| Interest Basis | Calculated on remaining unpaid principal each month | Calculated on full original loan principal every month |
| Total Interest Cost | Lower effective cost | Higher effective cost (~1.8×–1.9× equivalent rate) |
| Common Use Cases | Mortgages, bank auto loans, student loans | Consumer installment plans, short-term microfinance |
Frequently Asked Questions
Why does the interest portion shrink every month in an amortized loan?
In a reducing-balance schedule, each monthly payment pays off that month's accrued interest first, and the remainder reduces your principal balance. Because your principal shrinks each month, the interest charged in subsequent months decreases while the principal portion grows.
Is my financial data stored or sent anywhere?
No. All calculations execute locally in your browser. None of your loan amounts or financial inputs are ever transmitted to any server.