Loan Repayment Calculator
Before taking out any loan — whether it is a personal loan, car loan, or mortgage — knowing your exact monthly repayment amount is essential for budgeting. This free loan repayment calculator shows you the monthly payment, total interest paid, and total amount repaid over the life of the loan, all in seconds.
How to use it: enter the loan amount, the annual interest rate, and the loan term in years. Click Calculate Repayment and you will instantly see your monthly payment broken down alongside the total interest cost and total amount paid.
The calculator uses the standard amortization formula used by banks and lenders worldwide. This means the result matches what you would see on an official loan agreement for a fixed-rate loan.
Understanding total interest is just as important as knowing the monthly payment. A loan with a low monthly payment but a long term can cost significantly more in total interest than a shorter loan with a higher monthly payment. This calculator makes that comparison easy.
Common uses include estimating car loan payments, planning personal loan repayments, getting a rough mortgage estimate, comparing loan offers with different rates or terms, and budgeting for a new financial commitment.
FAQ
Q: What type of loans does this calculator work for?
A: This calculator works for any fixed-rate amortizing loan — personal loans, car loans, student loans, and mortgages with a fixed rate. It does not apply to variable-rate loans or interest-only loans.
Q: Why is the total interest so high?
A: Interest accumulates over time. Longer loan terms mean more monthly payments, each of which includes an interest component. Shortening your loan term significantly reduces total interest paid.
Q: Can I use this for a mortgage?
A: Yes, for a basic fixed-rate mortgage estimate. Note that actual mortgage payments may also include property taxes and insurance, which this calculator does not factor in.
Q: What happens if the interest rate is 0%?
A: The calculator handles 0% interest correctly — the monthly payment is simply the principal divided by the number of months.
Related tools: Compound Interest Calculator — Salary After Tax Calculator — Retirement Savings Calculator