Loan Calculator
Understanding Different Types of Loans
Amortized Loans
Regular payments spread over time, including both principal and interest.
- Mortgages
- Auto Loans
- Personal Loans
- Student Loans
Deferred Payment
Single lump sum payment at maturity.
- Commercial Loans
- Bridge Financing
- Short-term Business Loans
Bonds
Predetermined payment at maturity.
- Government Bonds
- Corporate Bonds
- Zero-coupon Bonds
Key Factors Affecting Your Loan
Interest Rate
The cost of borrowing, typically expressed as APR.
- Credit score impact
- Market conditions
- Loan type specific
Loan Term
Duration affects total cost and monthly payments:
- Longer term = Lower monthly payments
- Shorter term = Less total interest
Compound Frequency
How often interest is calculated:
- Daily
- Monthly (most common)
- Annually
Secured vs Unsecured Loans
| Feature | Secured Loans | Unsecured Loans |
|---|---|---|
| Collateral | Required (home, car, etc.) | Not required |
| Interest Rates | Generally lower | Generally higher |
| Loan Amounts | Higher amounts available | Usually smaller amounts |
| Approval Chance | Higher | Depends on credit score |
| Common Types | Mortgages, Auto loans | Personal loans, Credit cards |
Important: Secured loans risk losing the collateral if you default,
while unsecured loans may lead to legal action and damaged credit scores.