Loan Calculator is a free online tool that displays the loan amount to be paid on monthly for the given input values such as loan amount, term, interest rate. The Online Loan calculator tool provided by BYJU’S makes the calculations faster and displays the monthly loan payment value within a fraction of seconds.
How to Use the Loan Calculator?
Given below is the procedure to use the online loan calculator:
Step 1: Enter the loan amount, interest rate (in percentage), loan term (tenure),
Step 2: Click the button “Calculate” to get the monthly loan payment value
Step 3: The payment value will be displayed in the new window
What is a Loan?
A loan is a contract between a borrower and a lender in which the borrower receives an amount of money (or principal) that they are obligated to pay back in the future. In financial terms, this can be defined in simple terms as follows.
A loan is the lending of money by one or more organisations, individuals, or other entities to other organizations, individuals etc. The recipient that means the borrower incurs a debt and is usually liable to pay interest on that amount taken as a loan until it is paid back as well as to repay the principal amount borrowed. This interest can be simple or compound interest depends on the lender but most of the time it will be compound.
Loan Balance Formula
The formula which can be used to find the loan balance at any time during the tenure of the loan is as follows:
B = Loan Balance
A = Loan amount
r = Interest rate per month
n = Tenure in months
p = Monthly payment