A consumer loan, also known as a personal loan, is a loan taken by an individual for personal use, rather than for business or commercial purposes. These loans can be used for a variety of reasons, such as consolidating debt, financing a large purchase, covering unexpected medical expenses, or funding home improvements. Consumer loans typically come with a fixed interest rate and a repayment schedule, making them predictable for budgeting.
How the Consumer Loan Calculator Works
This calculator helps you estimate your monthly loan payments and the total cost of your loan, including interest. It uses a standard loan amortization formula to provide these estimates.
The Formula for Monthly Payment
The monthly payment (M) is calculated using the following formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
P = Principal loan amount (the amount you borrow)
i = Monthly interest rate (Annual interest rate divided by 12)
n = Total number of payments (Loan term in years multiplied by 12)
Example Calculation:
Let's say you want to borrow $10,000 with an annual interest rate of 5% for a term of 5 years.
Calculating this yields a monthly payment of approximately $188.71.
Calculating Total Interest and Total Paid:
Once the monthly payment is determined, we can find the total amount paid and the total interest paid:
Total Amount Paid = Monthly Payment * Total Number of Payments
Total Interest Paid = Total Amount Paid – Principal Loan Amount
Using our example:
Total Amount Paid = $188.71 * 60 = $11,322.60
Total Interest Paid = $11,322.60 – $10,000 = $1,322.60
Using This Calculator
Enter the loan amount, the annual interest rate (as a percentage), and the loan term in years. The calculator will instantly provide your estimated monthly payment, the total interest you'll pay over the life of the loan, and the total amount you will have repaid.
This tool is invaluable for:
Budgeting your monthly expenses.
Comparing different loan offers.
Understanding the true cost of borrowing.
Planning for financial goals that require financing.
Remember that these are estimates. Actual loan terms and rates may vary based on your creditworthiness and the lender's policies.
var loanAmountInput = document.getElementById('loanAmount');
var annualInterestRateInput = document.getElementById('annualInterestRate');
var annualInterestRateValueSpan = document.getElementById('annualInterestRateValue');
var loanTermInput = document.getElementById('loanTerm');
var loanTermValueSpan = document.getElementById('loanTermValue');
// Update slider value display when sliders are moved
annualInterestRateInput.oninput = function() {
var value = (this.value);
annualInterestRateValueSpan.textContent = value + '%';
};
loanTermInput.oninput = function() {
var value = (this.value);
loanTermValueSpan.textContent = value + ' Years';
};
function calculateLoan() {
var principal = parseFloat(document.getElementById('loanAmount').value);
var annualRate = parseFloat(document.getElementById('annualInterestRate').value);
var years = parseInt(document.getElementById('loanTerm').value);
var monthlyPaymentSpan = document.getElementById('monthlyPayment');
var totalInterestPaidSpan = document.getElementById('totalInterestPaid');
var totalAmountPaidSpan = document.getElementById('totalAmountPaid');
// Clear previous results
monthlyPaymentSpan.textContent = '$0.00';
totalInterestPaidSpan.textContent = 'Total Interest Paid: $0.00';
totalAmountPaidSpan.textContent = 'Total Amount Paid: $0.00';
// Input validation
if (isNaN(principal) || principal <= 0) {
alert("Please enter a valid loan amount.");
return;
}
if (isNaN(annualRate) || annualRate < 0) {
alert("Please enter a valid annual interest rate.");
return;
}
if (isNaN(years) || years <= 0) {
alert("Please enter a valid loan term in years.");
return;
}
var monthlyRate = (annualRate / 100) / 12;
var numberOfPayments = years * 12;
var monthlyPayment = 0;
if (monthlyRate === 0) { // Handle zero interest rate case
monthlyPayment = principal / numberOfPayments;
} else {
monthlyPayment = principal * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
}
var totalAmountPaid = monthlyPayment * numberOfPayments;
var totalInterestPaid = totalAmountPaid – principal;
monthlyPaymentSpan.textContent = '$' + monthlyPayment.toFixed(2);
totalInterestPaidSpan.textContent = 'Total Interest Paid: $' + totalInterestPaid.toFixed(2);
totalAmountPaidSpan.textContent = 'Total Amount Paid: $' + totalAmountPaid.toFixed(2);
}
// Initial calculation on load
window.onload = function() {
calculateLoan();
// Manually trigger update for slider values to match initial values
annualInterestRateValueSpan.textContent = annualInterestRateInput.value + '%';
loanTermValueSpan.textContent = loanTermInput.value + ' Years';
};