Loan Repayment Calculator
Calculate your monthly payment, total interest, and total cost for any fixed-term loan — free and instant.
Advanced options
Your result
Updates as you type- Monthly payment
- $470
- Total interest
- $2,546
- Total cost
- $22,546
Identical every month for the whole term.
What the loan costs you on top of the amount borrowed.
Amount borrowed plus all interest.
Yearly repayment schedule
| Year | Principal paid | Interest paid | Remaining balance |
|---|---|---|---|
| 1 | $4,560 | $1,076 | $15,440 |
| 2 | $4,842 | $795 | $10,598 |
| 3 | $5,140 | $496 | $5,457 |
| 4 | $5,457 | $179 | $0 |
Informational only — not financial advice. This is a simplified model that excludes fees, taxes and your personal circumstances. Read the full disclaimer.
Payment Breakdown
- Loan amount
- 89%
- Total interest
- 11%
Method, assumptions, and tips
Offer comparison assumes the same principal and no fees. Extra payments apply to the first offer only; monthly schedules include the smaller final payment.
Assumes a fixed interest rate for the whole term.
Assumes no missed payments; extra payments are optional and modeled if you enter one.
Interest is compounded monthly.
Your monthly payment spreads the loan plus interest evenly across every month of the term, using the standard amortization formula.
Stretching the term lowers the monthly payment but raises total interest — check both numbers before choosing.
Auto, personal, and other fixed-rate loans quoted in months rather than years.
How it works
How a monthly loan repayment is worked out
A monthly loan repayment calculator turns three numbers — the amount borrowed, the annual rate and the term — into the fixed sum you pay each month until the debt clears. Personal loans, car loans and most fixed-rate consumer credit all use the same amortization formula:
M = P × r(1 + r)^n / ((1 + r)^n − 1)
P is the amount borrowed, r is the monthly rate (annual divided by twelve) and n is the number of months. Because the rate is fixed, every payment is identical — only the split between interest and principal shifts as the balance falls.
Why this is framed in months
Mortgages are quoted in years; personal and car loans are quoted in months. A dealer offers 48 months, not four years. The maths is identical, but entering the term the way it appears on the offer removes a conversion step where mistakes happen.
What the term costs you
For the same principal and a fixed positive interest rate, a longer term lowers the scheduled monthly payment and increases interest if you follow that schedule. At zero interest, the total principal repaid is unchanged. Fees and extra payments can change the comparison. Here is $25,000 at 8% across three common car-loan terms:
| Term | Monthly payment | Total interest |
|---|---|---|
| 36 months | $783 | $3,203 |
| 48 months | $610 | $4,296 |
| 60 months | $507 | $5,415 |
Going from 36 to 60 months cuts the payment by about $276 and adds roughly $2,200 in interest. That is the entire trade, stated plainly.
On a car loan there is a second risk in the long term: depreciation. Stretch a loan far enough and you can owe more than the vehicle is worth for a large part of the term, which becomes a real problem if you need to sell or the car is written off.
What the calculator does not cover
- Fees. Origination or establishment fees, and any dealer add-ons, are not included. They raise your real cost and sometimes your balance.
- Variable rates. The result assumes the rate is fixed for the whole term. If yours can move, treat this as today's snapshot only.
- Missed or irregular payments. Regular monthly extra principal is supported, but missed payments and irregular extra amounts are not modeled.
- Insurance bundled into the loan. Payment-protection or gap insurance sold alongside the loan is separate.
Because of the first point in particular, compare offers on the total repayable, not just the monthly figure. A loan with a lower monthly payment and a large fee can be the more expensive one.
Using the result well
- Enter the annual rate as quoted — 8, not 0.08.
- Compare competing offers at the same term before comparing rates.
- Check whether the lender allows early repayment without penalty. If it does, the total interest figure here is a ceiling rather than a fixed cost.
- Sanity-check the monthly payment against your actual budget in a bad month, not an average one.
Everything is computed in your browser as you type. No values are transmitted or stored, so you can model a real offer with real numbers.
Compare the model with your lender’s terms
The Consumer Financial Protection Bureau loan-estimate explainer distinguishes interest rate, monthly payment, fees and total borrowing costs for U.S. mortgages. Its document rules are specific to mortgages, but the cost distinction helps explain why a payment estimate alone is insufficient for comparing borrowing. This tool models fixed-rate amortization, not a lender’s fee-inclusive APR or every loan contract. Check your actual agreement for fees and payment rules.
FAQ
How can I compare loan offers and export a schedule?
Open Advanced options to enter a second rate and term for the same loan amount, or switch the schedule to monthly. Download CSV from the schedule. The comparison excludes fees; extra payments apply only to the first offer.
How is a monthly loan repayment calculated?
With the standard amortization formula: M = P × r(1+r)^n / ((1+r)^n − 1), where P is the amount borrowed, r is the annual rate divided by twelve, and n is the number of months. Every payment is the same; the interest-to-principal split changes over the term.
How is this different from the mortgage calculator?
The maths is identical. This tool takes the term in months, which is how personal and car loans are quoted, while the mortgage calculator takes years. Use whichever matches your offer to avoid a conversion mistake.
Does this include fees?
No. It calculates principal and interest only. Origination or establishment fees, dealer add-ons and bundled insurance all increase your real cost, so compare offers on total repayable rather than the monthly figure alone.
Is a longer loan term cheaper?
Monthly, yes. Overall, no. On $25,000 at 8%, a 36-month term costs about $3,203 in interest while 60 months costs about $5,415 — roughly $2,200 more for the same money.
Can I pay the loan off early?
That depends on your lender, not this calculator. Many allow it without penalty, in which case the total interest shown here is a ceiling rather than a fixed cost. Some charge an early-repayment fee, so check the contract.
Does it work for a variable-rate loan?
Only as a snapshot at the current rate. The formula assumes a fixed rate for the whole term, so if yours can move, rerun the numbers whenever it does.
What does an extra monthly payment actually save?
It goes straight to principal, so it saves the most when the balance — and the interest charged on it — is highest, early in the term. On $20,000 at 6% over 48 months, an extra $100 a month clears the loan 9 months early and saves about $498 in interest. Enter your own extra amount to see the real numbers and the year-by-year schedule below.