Repayment Calculator
Calculate loan payments, interest rates, and payoff schedules for personal, auto, and business loans.
Loan Details
Extra Payment Strategy
Tax Considerations
Monthly Payment
22y 1m to pay off
Total Interest
Over loan term
Interest Savings
From extra payments
Principal vs Interest
Time Savings
Early payoff
Total Payments
Principal + interest
Payment Summary
Key Recommendations
- • Extra payments save $97618 and 7 years
- • Bi-weekly payments could save $73435
- • Consider investing extra payments if loan rate is low
- • Build emergency fund before aggressive loan prepayment
How it works
A repayment calculator shows the schedule to clear a loan: the regular payment, how long it takes, and the total interest. Adding extra to each payment reduces the principal faster and cuts the interest charged on every remaining period.
Repayment
M = P · r(1 + r)ⁿ / [(1 + r)ⁿ − 1] Extra payment → applied to principal
- P
- balance to repay
- r
- rate per period
- n
- number of payments
Worked example
- Balance P = $20,000 at 7%
- 5-year term → n = 60
- Base payment ≈ $396/month
- Add $100/month extra
The extra $100 clears the loan ~14 months early and saves several hundred in interest.
Good to know
- Even small, consistent overpayments make a big dent because they cut interest on every future period.
- Confirm extra payments reduce principal rather than just paying ahead on the next installment.
- Check for any prepayment penalty before overpaying.
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Frequently Asked Questions
How are loan repayments calculated?
Fixed loans use the amortization formula: Payment = P x [r(1+r)^n] / [(1+r)^n - 1], with P the balance, r the monthly rate, and n the number of payments. Early payments are mostly interest; later payments are mostly principal.
How can I pay off a loan faster?
Add extra money toward principal each month, make biweekly half-payments (13 full payments a year instead of 12), or apply windfalls like tax refunds. Even small extra amounts compound into large interest savings.
Should I use the avalanche or snowball method?
Avalanche pays the highest-interest debt first and saves the most money; snowball pays the smallest balance first for quicker psychological wins. The best method is whichever one you'll actually stick with.
What happens if I only make minimum payments?
You'll pay for the full term and the maximum interest. On credit cards it's worse — minimums are often set so low that a balance can take decades to clear while interest dwarfs the original purchase.
Do loans charge penalties for early repayment?
Some do — check your agreement for prepayment penalties. Most US mortgages, federal student loans, and many personal loans allow free early payoff, but some auto and subprime loans use precomputed interest that reduces the benefit.