A loan is a contract between a borrower and a lender in which the borrower receives an amount of money (principal) that they are obligated to pay back in the future. Most loans can be categorized into one of three categories:

Amortized Loan: Paying Back a Fixed Amount Periodically

Use this calculator for basic calculations of common loan types such as mortgages, auto loans, student loans, or personal loans, or click the links for more detail on each.

Deferred Payment Loan: Paying Back a Lump Sum Due at Maturity

Financial Calculator Disclaimer: The results provided by these calculators are intended for illustrative purposes only; accuracy is not guaranteed.These calculators are not intended to offer any tax, legal, or financial advice and do not assure the availability of or your eligibility for any specific product offered by Exchange Bank or its affiliate. Financial Calculators Calculators to help answer your financial what-ifs. Heartland Bank would like to be your financial expert – in person and on the internet! We hope that our listing of financial calculators provides the necessary information you need to make your decisions easier. The information provided by these calculators is for illustrative purposes only. The default figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a financial professional prior to relying on the results.

Bond: Paying Back a Predetermined Amount Due at Loan Maturity

Use this calculator to compute the initial value of a bond/loan based on a predetermined face value to be paid back at bond/loan maturity.

Logix Banking Calculators

Amortized Loan: Fixed Amount Paid Periodically

Many consumer loans fall into this category of loans that have regular payments that are amortized uniformly over their lifetime. Routine payments are made on principal and interest until the loan reaches maturity (is entirely paid off). Some of the most familiar amortized loans include mortgages, car loans, student loans, and personal loans. In everyday conversation, the word 'loan' will probably refer to this type, not the type in the second or third calculation. Below are links to calculators related to loans that fall under this category, which can provide more information or allow specific calculations involving each type of loan. Instead of using this Loan Calculator, it may be more useful to use any of the following for each specific need:

Deferred Payment Loan: Single Lump Sum Due at Loan Maturity

Many commercial loans or short-term loans are in this category. Unlike the first calculation which is amortized with payments spread uniformly over their lifetimes, these loans have a single, large lump sum due at maturity. Some loans, such as balloon loans, can also have smaller routine payments during their lifetimes, but this calculation only works for loans with a single payment of all principal and interest due at maturity.

Bond: Predetermined Lump Sum Paid at Loan Maturity

This kind of loan is rarely made except in the form of bonds. Technically, bonds operate differently from more conventional loans in that borrowers make a predetermined payment at maturity. The face, or par value of a bond, is the amount paid by the issuer (borrower) when the bond matures, assuming the borrower doesn't default. Face value denotes the amount received at maturity.

Two common bond types are coupon and zero-coupon bonds. With coupon bonds, lenders base coupon interest payments on a percentage of the face value. Coupon interest payments occur at predetermined intervals, usually annually or semi-annually. Zero-coupon bonds do not pay interest directly. Instead, borrowers sell bonds at a deep discount to their face value, then pay the face value when the bond matures. Users should note that the calculator above runs calculations for zero-coupon bonds.

After a borrower issues a bond, its value will fluctuate based on interest rates, market forces, and many other factors. While this does not change the bond's value at maturity, a bond's market price can still vary during its lifetime.

Loan Basics for Borrowers

Interest Rate

Nearly all loan structures include interest, which is the profit that banks or lenders make on loans. Interest rate is the percentage of a loan paid by borrowers to lenders. For most loans, interest is paid in addition to principal repayment. Loan interest is usually expressed in APR, or annual percentage rate, which include both interest and fees. The rate usually published by banks for saving accounts, money market accounts, and CDs is the annual percentage yield, or APY. It is important to understand the difference between APR and APY. Borrowers seeking loans can calculate the actual interest paid to lenders based on their advertised rates by using the Interest Calculator. For more information about or to do calculations involving APR, please visit the APR Calculator.

Compounding Frequency

Compound interest is interest that is earned not only on initial principal, but also on accumulated interest from previous periods. Generally, the more frequently compounding occurs, the higher the total amount due on the loan. In most loans, compounding occurs monthly. Use the Compound Interest Calculator to learn more about or do calculations involving compound interest.

Loan Term

A loan term is the duration of the loan, given that required minimum payments are made each month. The term of the loan can affect the structure of the loan in many ways. Generally, the longer the term, the more interest will be accrued over time, raising the total cost of the loan for borrowers, but reducing the periodic payments.

Consumer Loans

There are two basic kinds of consumer loans: secured or unsecured.

Secured Loans

A secured loan means that the borrower has put up some form of asset as a form of collateral before being granted a loan. The lender is issued a lien, which is a right to possession of property belonging to another person until a debt is paid. In other words, defaulting on a secured loan will give the loan issuer legal ability to seize the asset that was put up as collateral. The most common secured loans are mortgages and auto loans. In these examples, the lender holds the deed or title, which is a representation of ownership, until the secured loan is fully paid. Defaulting on a mortgage typically results in the bank foreclosing on a home, while not paying a car loan means that the lender can repossess the car.

Lenders are generally hesitant to lend large amounts of money with no guarantee. Secured loans reduce the risk of the borrower defaulting, since they risk losing whatever asset they put up as collateral. If the collateral is worth less than the outstanding debt, the borrower can still be liable for the remainder of the debt.

Secured loans generally have a higher chance of approval compared to unsecured loans and can be a better option for those who would not qualify for an unsecured loan,

Unsecured Loans

Calculate Loan Payment Calculator

An unsecured loan is an agreement to pay a loan back without collateral. Because there is no collateral involved, lenders need a way to verify the financial integrity of their borrowers. This can be achieved through the five C's of credit, which is a common methodology used by lenders to gauge the creditworthiness of potential borrowers.

• Character—may include credit history and reports to showcase the track record of a borrower's ability to fulfill debt obligations in the past, their work experience and income level, and any outstanding legal considerations
• Capacity—measures a borrower's ability to repay a loan using a ratio to compare their debt to income
• Capital—refers to any other assets borrowers may have, aside from income, that can be used to fulfill a debt obligation, such as a down payment, savings, or investments
• Collateral—only applies to secured loans. Collateral refers to something pledged as security for repayment of a loan in the event that the borrower defaults
• Conditions—the current state of the lending climate, trends in the industry, and what the loan will be used for

Unsecured loans generally feature higher interest rates, lower borrowing limits, and shorter repayment terms than secured loans. Lenders may sometimes require a co-signer (a person who agrees to pay a borrower's debt if they default) for unsecured loans if the lender deems the borrower as risky.

If borrowers do not repay unsecured loans, lenders may hire a collection agency. Collection agencies are companies that recover funds for past due payments or accounts in default.

Examples of unsecured loans include credit cards, personal loans, and student loans. Please visit our Credit Card Calculator, Personal Loan Calculator, or Student Loan Calculator for more information or to do calculations involving each of them.

Important Notice: Links to the interactive calculators and information provided below are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

Auto Calculators

Find out how much automobile you can buy based on your monthly payment, or find out your loan payment based on your purchase price!

Credit Cards and Debt Management

Consolidating your debt is only half of the battle. You still need a plan to get your debt paid in full. This calculator can show you how to accelerate your debt payoff.

Use this calculator to see what it will take to pay off your credit card balance, and what you can change to meet your repayment goals.

The Credit Card Roll-Down Calculator applies two simple principles to paying off your credit card debt.

Insurance Calculators

Bank Calculators Mortgage

How much life insurance do you really need? Find out here!

Loan Calculators

Enter your desired payment – and let us calculate your loan amount. Or, enter in the loan amount and we will calculate your monthly payment!

Should you consolidate your debt? Use this calculator to find out.

Use this calculator to sort through the monthly payments, fees and other costs associated with comparing loan options.

Mortgage Calculators

Using bi-weekly payments can accelerate your mortgage payoff and save you thousands in interest. Use this calculator to compare a typical monthly payment schedule to an accelerated bi-weekly payment.

Use this calculator to determine your maximum mortgage and how different interest rates affect your how much you can borrow.

Use this calculator to find the APR on your mortgage. Github readme video.

Use this calculator to determine your monthly payment and amortization schedule.

Save thousands of dollars in interest by increasing your monthly mortgage payment.

Personal Finance

Balance your checkbook with this quick and easy calculator.

Analyze your budget, see where your money goes and find out where you can improve!

Retirement Savings and Planning

Amp Banking Calculators

A 401(k) can be one of your best tools for creating a secure retirement. Use this calculator to see why this is a retirement savings plan you can not afford to pass up.

Quickly determine if your retirement plan is on track – and learn how to keep it there.

Use this calculator to compare the Roth IRA to an ordinary taxable investment.

Use this calculator to determine which IRA may be right for you.

How can contributing to a regular IRA help you in your retirement?

Savings Calculators

Use this calculator to find out how much interest you can earn on a Certificate of Deposit (CD). Samsung xpress sl-m2020w mac software download.

Even a small difference in the interest you are paid on your savings can add up over time. Use this calculator to see how different savings rates can impact your savings strategy!

Online Payment Calculator

Download gis software for mac. Find out how consistent investments over a number of years can be an effective strategy to accumulate wealth.

What will it take to reach your savings goal? This financial calculator helps you find out.

Tax Calculators

How much in income taxes will you pay? Use this 1040 tax calculator to help determine your tax bill for next April.

Knowing your potential estate tax liability is a great place to start your estate tax plan. Use this calculator to estimate your estate tax liability.

Financial Calculator online, free

©2012 The Forms Group – Format and Presentation