Use this loan repayment calculator to quickly understand how a loan will be paid off over time. By entering a loan amount, interest rate, and either a monthly payment or repayment period, you can see how long it will take to repay the loan and how much interest you will pay in total.
Loan Repayment Calculator
Enter the loan amount and interest rate. Then choose either a monthly payment amount or a repayment period.
How the calculator works
This calculator is based on a standard loan repayment model commonly used in financial calculations. It calculates interest on the remaining balance each month and divides each payment into two parts: interest and principal. Early in the repayment period, a larger portion of each payment goes toward interest, while over time more of the payment goes toward reducing the loan balance.
If you enter a repayment period, the calculator determines the required monthly payment using the standard annuity formula. This ensures that the loan is fully repaid within the selected time frame, assuming a fixed interest rate. If you instead enter a monthly payment amount, the calculator simulates the repayment month by month until the balance reaches zero. This allows you to see how long it will take to pay off the loan and how the balance decreases over time.
The results include the total repayment time, the monthly payment, and the total amount of interest paid. In addition, a detailed amortization schedule shows each monthly payment, how much goes toward interest and principal, and the remaining balance after each payment. This provides a clear and transparent view of how the loan evolves over time.
The calculation assumes a fixed nominal annual interest rate and does not include fees or changes in interest rates. While this provides a reliable estimate, actual loan terms may vary depending on the lender and specific conditions.
How the calculator works
This calculator is based on a standard loan repayment model commonly used in financial calculations. It calculates interest on the remaining balance each month and divides each payment into two parts: interest and principal. Early in the repayment period, a larger portion of each payment goes toward interest, while over time more of the payment goes toward reducing the loan balance.
If you enter a repayment period, the calculator determines the required monthly payment using the standard annuity formula. This ensures that the loan is fully repaid within the selected time frame, assuming a fixed interest rate. If you instead enter a monthly payment amount, the calculator simulates the repayment month by month until the balance reaches zero. This allows you to see how long it will take to pay off the loan and how the balance decreases over time.
The results include the total repayment time, the monthly payment, and the total amount of interest paid. In addition, a detailed amortization schedule shows each monthly payment, how much goes toward interest and principal, and the remaining balance after each payment. This provides a clear and transparent view of how the loan evolves over time.
The calculation assumes a fixed nominal annual interest rate and does not include fees or changes in interest rates. While this provides a reliable estimate, actual loan terms may vary depending on the lender and specific conditions.