Compound vs. Simple Interest Loan Calculator

Understand the true cost of borrowing with our advanced loan calculator. This powerful tool allows you to compare loans using either Compound Interest (like mortgages and auto loans) or Simple Interest. It provides a detailed financial breakdown, including a full, month-by-month amortization schedule for compound loans, so you can see exactly where your money is going.

How It Works

Our calculator is designed to provide a clear, instant, and comprehensive analysis of any loan.

  1. Enter Loan Details: Input the Principal Amount, Annual Interest Rate, and the Loan Term.
  2. Select Your Model: Choose the interest type (Compound or Simple) and the term unit (Years or Months) to match your loan's structure.
  3. Analyze the Instant Results: The tool immediately calculates and displays a full breakdown of the loan, including payments, total interest, and a detailed schedule where applicable.

Key Features

  • Dual Interest Models:
    • Compound Interest: The standard for most loans like mortgages and auto financing. This mode includes a detailed, month-by-month amortization schedule.
    • Simple Interest: Often used for shorter-term personal loans. This mode provides a straightforward calculation of total interest over the loan's life.
  • Full Amortization Schedule: For compound interest loans, a complete table is generated showing how each monthly payment is split between principal and interest, and the remaining balance for every month of the loan.
  • Visual Principal vs. Interest Chart: The compound interest mode includes a dynamic donut chart that visually represents the proportion of your total repayment that goes toward the principal versus the interest.
  • Flexible Term Input: Easily switch between entering the loan term in Years or Months to fit your needs.
  • Real-Time Animated Results: All results are calculated instantly and animated smoothly, making it easy to see the impact of your adjustments to the loan terms.
  • Clear Financial Summary: Get a clear overview of your monthly payment, total principal, total interest paid, and the total cost of the loan over its full term.

How to Use the Calculator

  1. Step 1: Enter Loan Information
    Fill in the Loan Amount, Interest Rate, and Term in the input fields.
  2. Step 2: Choose Calculation Type
    Select "Compound" or "Simple" interest. This is the most critical step and will change the results and the details shown.
  3. Step 3: Set Term Unit
    Specify whether the term you entered is in "Years" or "Months".
  4. Step 4: Review the Breakdown
    Analyze the hero result (e.g., Monthly Payment) and the detailed grid. If you selected "Compound," scroll down to view the full amortization schedule.

Find Our Tool

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