Loan Repayment Calculator
Calculate monthly loan payments, total interest, and payoff time. Compare different rates, terms, and payment amounts to find the repayment scenario that works for you.
No currency selection needed. Just enter the amounts in the currency you use and keep it consistent throughout the calculation.
Scenario 1
Scenario 1 repayment schedule
| Payment # | Payment | Principal | Interest | Balance |
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How to use
- Enter loan details: Start with the loan amount, annual interest rate, and either the loan term (years and months) or the monthly payment you plan to pay.
- Choose calculation mode: Select "Calculate monthly payment" to find your required payment for a given term, or "Calculate payoff time" to find how long it takes to repay a given monthly payment.
- Review results: The calculator shows your monthly payment, payoff time in years and months, total interest, and total amount repaid.
- Test scenarios: Click + Add scenario to duplicate the calculation and change one variable (e.g., interest rate, loan term, or monthly payment) to see how it affects the outcome.
- Compare: Use Compare by to order scenarios by lowest monthly payment, lowest total interest, lowest total repayment, or shortest payoff time.
- Review schedules: Click View repayment schedule to see a month-by-month breakdown of principal, interest, and remaining balance for any scenario.
All calculations update instantly as you enter values.
How loan repayment works
Principal is the amount you borrow. Annual interest rate is the yearly cost of borrowing, expressed as a percentage. Monthly interest is calculated as 1/12 of the annual rate applied to the remaining balance.
Loan term is the period over which you repay the loan. Monthly payment is the fixed amount you pay each month (though the final payment may be smaller).
Each monthly payment is split between principal (reducing the loan balance) and interest (cost of borrowing). The interest share is generally higher early in the loan and decreases as the remaining balance falls, while the principal share increases over time.
Shorter terms reduce total interest but increase monthly payments. A 15-year loan requires higher monthly payments than a 30-year loan on the same principal and rate, but you pay much less interest overall. Longer terms reduce monthly payments but increase total interest. A 30-year loan has lower monthly payments but costs more in total interest.
Higher interest rates increase both monthly payments and total interest cost. Lower rates reduce both.
Example: Compare a 5-year and 10-year loan
Suppose you borrow 50,000 at 6% annual interest.
- 5-year loan: Monthly payment is approximately 966.03, total interest is approximately 7,961.81, total repaid is approximately 57,961.81.
- 10-year loan: Monthly payment is approximately 555.10, total interest is approximately 16,612.10, total repaid is approximately 66,612.10.
The 5-year loan requires a higher monthly payment (966.03 vs 555.10) but costs 8,650.29 less in total interest. The 10-year loan is easier on the monthly budget but costs significantly more over time. Using this calculator, you can test any combination of loan amount, rate, and term to compare your options.
Frequently asked questions
A monthly loan payment is calculated using the amortization formula. For a loan with principal P, monthly interest rate r, and number of payments n: Payment = P × [r(1+r)^n] / [(1+r)^n - 1]. This calculator computes it automatically. Just enter your loan amount, annual interest rate, and loan term.
Total interest is the difference between the total amount repaid and the original loan amount. It depends on the principal, interest rate, and loan term. A higher rate or longer term increases total interest. This calculator computes it automatically from the amortization schedule.
A longer loan term reduces your monthly payment but increases total interest paid. A shorter term increases your monthly payment but reduces total interest. For example, a 15-year loan on 200,000 at 6% requires about 1,687.71 per month, while a 30-year loan requires about 1,199.10 per month—but you pay far more interest over 30 years.
A higher interest rate increases both the monthly payment and total interest. A lower rate reduces both. Small rate differences can have large effects over time. For example, a 200,000 loan over 30 years costs 231,676.38 in interest at 6%, but 328,310.49 at 8%—a difference of 96,634.11.
Enter your first loan details, then use the + Add scenario button to create a duplicate. Change one variable (loan amount, rate, term, or payment) in the new scenario. The calculator automatically updates all results. Use Compare by to sort scenarios by lowest payment, lowest interest, lowest total repayment, or shortest payoff time.
An amortization schedule is a table showing each loan payment, how much goes to principal versus interest, and the remaining balance after each payment. Early payments have more interest; later payments have more principal. The schedule shows how your loan balance decreases to zero over time.
Disclaimer
Results are estimates based on the values you enter. This calculator assumes a fixed-rate, fully-amortizing loan with monthly payments. Actual lender calculations may differ due to origination fees, rounding practices, payment timing, compounding methods, or other lender-specific terms and conditions. This calculator is provided for informational purposes only and does not constitute financial advice or a loan offer. Consult your lender or financial advisor for actual loan terms and conditions.