Loan Repayment Calculator

Enter a loan amount, interest rate and term to see your monthly payment, total interest and a year-by-year payoff schedule. Add an extra monthly payment to see how much sooner you would be debt-free.

Loan payment formula

Monthly payment = P × r ÷ (1 − (1 + r)^−n)

P is the amount borrowed, r is the monthly interest rate (APR ÷ 12) and n is the number of monthly payments. This is the standard formula for fixed-rate amortizing loans such as personal loans, car loans and mortgages.

Worked example

Borrowing $25,000 at 7.5% for 5 years: r = 0.075 ÷ 12 = 0.00625 and n = 60. The payment is 25,000 × 0.00625 ÷ (1 − 1.00625^−60) = $500.95 a month. Over the 5 years you pay $5,057 in interest.

How extra payments help

Any amount you pay above the required payment goes straight to the principal. A smaller balance means less interest the next month, so the savings build up. In the example above, paying an extra $100 a month clears the loan 11 months early and saves about $1,014 in interest.

Before you borrow

  • Compare the APR, not just the interest rate. APR includes most fees.
  • Check whether the loan has prepayment penalties before making extra payments.
  • A longer term lowers the monthly payment but increases the total interest.
  • Make sure the payment fits your budget; the debt-to-income calculator helps.

Results assume a fixed rate and on-time monthly payments. Your lender’s figures may differ slightly because of rounding, fees or payment dates.

Frequently asked questions

How do I calculate my monthly loan payment?

Use the formula P × r ÷ (1 − (1 + r)^−n), where r is the monthly rate and n the number of payments, or enter your numbers in the calculator.

How much interest will I pay on a loan?

Multiply the monthly payment by the number of payments, then subtract the amount borrowed. The calculator shows this as Total interest.

Do extra payments really save money?

Yes. Extra payments reduce the principal, so less interest builds up each month and the loan ends sooner.

What is the difference between APR and interest rate?

The interest rate is the cost of borrowing the principal. APR adds most fees, so it reflects the true yearly cost.

Can I use this for a car loan or mortgage?

Yes, for any fixed-rate loan with equal monthly payments. Mortgage payments may also include taxes and insurance, which are not included here.

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