Amortized Loan Calculator
Use this calculator for basic calculations of common loan types.
Amortized Loan: Paying Back a Fixed Amount Periodically
Results:
Payment Every Month
$0.00
Total of Payments
$0.00
Total Interest
$0.00
Deferred Payment Loan Calculator
Calculate the future value of a loan with a single lump sum payment at maturity.
Paying Back a Lump Sum Due at Maturity
Results:
Amount Due at Loan Maturity
$0.00
Total Interest
$0.00
Bond Present Value Calculator
Calculate the initial value of a bond or loan based on its face value at maturity.
Bond: Paying Back a Predetermined Amount Due at Loan Maturity
Results:
Amount Received When Loan Starts (Present Value)
$0.00
Total Interest
$0.00
Understanding the Bond Calculator
This calculator determines the present value (PV) of a future lump sum payment. This is commonly used for valuing zero-coupon bonds, which are purchased at a discount to their face value and do not pay periodic interest. The investor's return comes from the difference between the purchase price and the face value received at maturity.
The Formula Used
The calculation is based on the standard present value formula:
PV = FV / (1 + r/n)^(n*t)
Where:
- PV = Present Value (the amount you receive or pay today)
- FV = Future Value (the predetermined amount due at maturity)
- r = Annual interest rate (as a decimal)
- n = Number of compounding periods per year
- t = Number of years until maturity
Frequently Asked Questions (FAQ)
What is a zero-coupon bond?
A zero-coupon bond is a debt security that doesn't pay interest but is traded at a deep discount, rendering a profit at maturity when the bond is redeemed for its full face value.
How does compounding frequency affect the present value?
The more frequently interest is compounded (e.g., monthly vs. annually), the more interest accrues over time. This means that for a given future value, a higher compounding frequency will result in a lower present value, as the discount effect is stronger.
Can I use this for loans other than bonds?
Yes. This calculator is suitable for any financial instrument where a single, predetermined lump sum is to be paid back at a future date, and you want to find its equivalent value today based on a specific interest rate.