A repayment calculator works out the fixed monthly payment that clears a loan over a set term, and the total interest you pay. $15,000 at 7% over 60 months costs $297.02 a month.
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How to use the repayment calculator
- Enter the amount borrowed.
- Enter the annual interest rate.
- Enter the term in months.
- Read the payment, total paid and total interest.
How the repayment calculator works
The repayment calculator finds the fixed monthly payment that pays off a loan over a set number of months, plus the total paid and total interest. It uses the standard amortization formula:
- Payment = P × i ÷ (1 − (1 + i)^−n)
P is the amount borrowed, i is the annual rate divided by 12 and by 100, and n is the number of months. At a 0% rate, the payment is simply P ÷ n. The amount must be above zero, the rate cannot be negative, and the term must be at least one month.
Repayment calculator worked example
You borrow $15,000 at 7% for 60 months. The monthly rate is 0.5833%, and the repayment calculator gives a payment of $297.02. Over five years you pay $17,821.08, of which $2,821.08 is interest. Over 36 months the payment rises to $463.16, but interest falls to $1,673.63, a saving of more than $1,100.
| Amount | Rate | Months | Payment | Total interest |
|---|---|---|---|---|
| $15,000 | 7% | 60 | $297.02 | $2,821.08 |
| $15,000 | 7% | 36 | $463.16 | $1,673.63 |
| $10,000 | 0% | 24 | $416.67 | $0.00 |
| $25,000 | 9.5% | 72 | $456.87 | $7,894.44 |
Shorter or longer term?
A longer term lowers the monthly payment but raises the total interest, because the balance is owed for longer. A shorter term costs more each month and less overall. Pick the shortest term whose payment fits your budget comfortably, with room for savings and surprises. Lenders often offer lower rates for shorter terms too, adding to the saving.
Rate versus APR
The rate you enter should be the loan’s interest rate. The APR also folds in some fees, so it gives a better comparison between offers. The CFPB explains that a loan with a lower rate but high fees can cost more than one with a slightly higher rate and no fees. If a fee is added to the loan, include it in the amount.
Paying early
Extra payments go to principal and cut total interest, as long as the loan has no prepayment penalty. Even one extra payment a year can shorten a five-year loan by several months. The repayment calculator does not model extra payments; for that, use an amortization schedule or debt payoff tool.
Loans it fits
Any fixed-rate loan with equal monthly payments fits: personal loans, car loans, student loans in standard repayment and many small business loans. It does not fit credit cards, whose minimum payments change with the balance, or interest-only and balloon loans. For mortgages, the payment shown is principal and interest only, without tax and insurance.
Fitting the payment into a budget
Lenders look at your debt-to-income ratio, total monthly debt payments divided by gross income. Many prefer it below about 36%. Add the new payment to your existing ones and check before you apply.
How each payment is split
Early payments are mostly interest, later ones mostly principal. In the $15,000 example, the first payment of $297.02 includes $87.50 of interest (0.5833% of $15,000) and $209.52 of principal. By the final year, interest is only a few dollars a month. That is why paying extra early saves the most. The total interest falls fastest when the balance is reduced at the start of the loan.
Tips
- Compare offers using the same amount and term.
- Use the repayment calculator to see the interest saved by a shorter term.
- Ask whether early repayment carries a fee.
- Round the payment up slightly to finish sooner.
Estimates for education only, not financial advice. Your lender’s figures are final.
Related converters and calculators
Related calculators:
- Loan calculator: loan costs
- Amortization calculator: schedule
- Auto loan calculator: car loans
- Debt payoff calculator: pay off debt
Sources
CFPB: Loan Estimate explainer; CFPB: What is amortization?.
Formula and method
pay = PMT(principal, annual rate, months); total = pay * months; interest = total - principal.
Standard EMI-style amortizing payment. Shares the same pmt helper used across Calcenzo loan tools. Headline is monthly repayment.
Questions about this calculator
How is the monthly payment calculated?
Payment = P × i / (1 − (1 + i)^−n).
What happens at 0% interest?
The payment is the amount divided by the months.
Does a longer term save money?
No; it lowers the payment but raises total interest.
Does it include fees?
Only if you add them to the amount.
Can it model extra payments?
No.
Check the assumptions and units before relying on a result. Financial, tax and health estimates do not replace advice for your individual circumstances.
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