Loan repayment calculator
This loan repayment calculator gives your monthly repayment, the total you will repay and a full schedule, with an option to repay faster.
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $3,425.26 | $1,383.86 | $16,574.74 |
| 2 | $3,691.20 | $1,117.92 | $12,883.54 |
| 3 | $3,977.75 | $831.37 | $8,905.79 |
| 4 | $4,286.55 | $522.57 | $4,619.24 |
| 5 | $4,619.24 | $189.79 | $0.00 |
Reading the repayment schedule
Each repayment covers that month’s interest first and the rest repays principal. The schedule shows the split for every payment and the balance left. Use the yearly view for a quick overview and the monthly view when you need an exact figure, such as the balance at a particular date.
Early and extra repayments
Adding to each repayment shortens the loan and cuts interest. Some lenders charge an early repayment fee, so ask before you pay a lump sum. Where there is no fee, a lump sum early in the loan saves the most, because it removes principal that would otherwise accrue interest for years.
$20,000 at 7.5% by loan length
Borrowing $20,000 at 7.5% over 5 years costs $400.76 a month and $4,046 in interest, $24,046 in total. Shorter terms raise the payment but cut the interest, and longer terms do the reverse. The table shows the trade-off across common terms.
| Term | Monthly payment | Total interest | Total paid |
|---|---|---|---|
| 12-month | $1,735.15 | $822 | $20,822 |
| 2-year | $899.99 | $1,600 | $21,600 |
| 3-year | $622.12 | $2,397 | $22,397 |
| 4-year | $483.58 | $3,212 | $23,212 |
| 5-year | $400.76 | $4,046 | $24,046 |
| 7-year | $306.77 | $5,768 | $25,768 |
| 10-year | $237.40 | $8,489 | $28,489 |
How your rate changes the cost
Personal loan rates vary widely with credit score, from the mid single digits for strong borrowers to 30% or more for weak credit. On $20,000 over 5 years, moving from 7.5% to 10.5% adds $1,747 in interest.
| APR | Monthly payment | Total interest |
|---|---|---|
| 4.5% | $372.86 | $2,372 |
| 6% | $386.66 | $3,199 |
| 7.5% | $400.76 | $4,046 |
| 9% | $415.17 | $4,910 |
| 10.5% | $429.88 | $5,793 |
How much can you borrow for a given payment?
Working backwards at 7.5% over 5 years, here is the loan size each monthly payment supports.
| Monthly payment | Loan amount |
|---|---|
| $200/month | $9,981 |
| $300/month | $14,972 |
| $400/month | $19,962 |
| $500/month | $24,953 |
When is half of a $20,000 loan repaid?
With a $400.76 payment, the balance falls below half ($10,000) after 33 payments, about 2.8 years into a 5 years loan. Because interest is highest at the start, the second half of the loan is paid down much faster than the first.
| After | Balance left | Paid so far |
|---|---|---|
| 1 year | $16,575 | $4,809 |
| 2 years | $12,884 | $9,618 |
| 3 years | $8,906 | $14,427 |
Frequently asked questions
What is the difference between repayment and payment?
They mean the same thing here: the amount you pay each period to repay the loan, including interest.
How do I repay a loan faster?
Add an extra amount to each payment, make one lump-sum payment, or switch to a shorter term through a refinance. Confirm there is no prepayment penalty.
How is a loan payment calculated?
The payment is principal × r ÷ (1 − (1 + r)^−n), where r is the monthly rate (APR ÷ 12) and n is the number of months. Each payment covers that month’s interest first, and the rest reduces the balance.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the money. APR also includes certain fees, so it is the better number for comparing offers. This calculator treats the rate you enter as the rate that accrues on the balance.
Related calculators
Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.