Yearly Loan Payment Calculator
Our Yearly Loan Payment Calculator offers a simple and intuitive way to understand your yearly loan commitments. With this tool, you can quickly estimate your yearly payment, the total payment over the course of the loan, and the total interest you will pay.
In addition, our detailed amortization table provides a year-by-year breakdown of your payments, showcasing how much goes towards the principal and how much is paid as interest each year.
Yearly Loan Payment Calculator
Yearly Loan Payment Results
Yearly Payment:
Total Payment:
Total Interest:
| Year | Payment | Principal | Interest | Remaining Balance |
|---|
How to use this yearly payment calculator
Follow the steps below of this yearly loan payment calculator to effortlessly determine your annual payments and overall loan overview.
Principal Amount ($):
This represents the total loan amount you intend to borrow.
- How to Input: Simply enter the loan amount without any commas. For instance, for a loan of $25,000.00, you would enter 25000.
*** If you don’t know what to put in an input field, you can hover or click on the question mark “?” to get helpful tip on what the field is all about.***
Annual Interest Rate (%):
This is the annual interest rate provided by your lender, expressed as a percentage.
- How to Input: Enter the interest rate as a whole number or a decimal. For an interest rate of 5%, you would enter 5.
Loan Term (Years):
This represents the total duration of your loan, expressed in years.
- How to Input: Enter the number of years you intend to take to repay the loan. For a 5-year loan term, you would enter 5.
Once all the details are entered, click the Calculate button.
Results of this Yearly Loan Payment Calculator
Upon calculation, you will receive:
- Yearly Payment: The amount you will need to pay every year.
- Total Payment: The total amount you will pay over the entire loan term, combining both principal and interest.
- Total Interest: The total interest you will pay over the entire loan term.
Furthermore, a detailed Amortization Table will appear, providing a breakdown for each year. This table showcases:
- The year of the loan term.
- The total payment for that year.
- The amount of that year’s payment that goes towards the principal.
- The amount of that year’s payment that goes towards interest.
- The remaining balance after that year’s payment.
If you want to know the monthly payments for any particular loan, you can use our free Monthly Payment Calculator. You can also check Bi-Weekly Payments using this Bi-weekly Payment Calculator, OR see our full range of Free Finance Calculators you can use for various calculations.
Formulas Used in This Loan Payment Calculator
Before getting to the Yearly Loan Payment Formulas in this calculator, it is important to understand the meaning of the formula’s components as stated below.
- = Yearly payment
- = Principal loan amount (initial amount borrowed)
- = Annual interest rate (as a decimal). For example, 5% would be 0.05.
- = Loan term in years
Yearly Payment (Y):
This is the amount a borrower needs to pay each year to repay the loan. The formula to calculate Yearly Payment is:
Total Payment:
This is the cumulative amount paid over the entire loan term, including both principal and interest. The formula is:
Total Payment = Y * n
Total Interest:
This represents the total amount of interest paid over the entire loan term. The formula is:
Total Interest = Total payment – P
Amortization Table Calculations:
The amortization table provides a year-by-year breakdown of payments. For each year:
Interest for the Year = Remaining balance from the previous year * r
Principal for the Year = Y (Yearly payment) – Interest for the Year
Remaining Balance = Remaining balance from the previous year – Principal for the Year