Loan Repayment Calculator
Work out your monthly payment on a personal loan, auto loan, or debt consolidation — and see how paying a little extra each month saves interest.
Your scheduled monthly payment
$415.17
You'll pay $415.17 per month for 5 years. Over the life of the loan you'll pay $4,910.03 in interest on top of the $20,000.00 you borrowed.
Balance and interest over time
Year-by-year breakdown
| Year | Payments | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $4,982.01 | $1,665.40 | $3,316.60 | $16,683.40 |
| 2 | $4,982.01 | $1,354.28 | $3,627.72 | $13,055.68 |
| 3 | $4,982.01 | $1,013.98 | $3,968.03 | $9,087.65 |
| 4 | $4,982.01 | $641.75 | $4,340.25 | $4,747.40 |
| 5 | $4,982.01 | $234.61 | $4,747.40 | $0.00 |
Formula
A standard amortising loan is calculated as
M = P × r(1+r)n / ((1+r)n − 1),
where P is the loan amount, r is the monthly rate
(annual rate divided by 12), and n is the term in months. When the rate
is zero, monthly payment is simply M = P / n.
Each month, interest is charged on the remaining balance and the rest of the payment
reduces the principal — so early payments are mostly interest, and later payments are
mostly principal.
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Frequently asked questions
What's the difference between APR and the interest rate I enter here?▾
APR (Annual Percentage Rate) is the standardized rate disclosed under the federal Truth in Lending Act — it bundles the interest rate with most fees so you can compare offers on equal footing. The rate this calculator uses is a flat periodic interest rate applied to the balance each month. For a fee-free loan the two match closely; for a loan with origination fees the APR will be higher. Use the lender's stated APR as a working figure unless you know the true periodic rate.
Can I make extra payments to pay off the loan sooner?▾
Yes — that's what the 'Extra monthly payment' field models. Federal CFPB rules ban prepayment penalties on most consumer loans originated since 2014, but some auto loans and older personal loans may still charge them. Check your loan agreement before committing to a faster payoff plan.
Does this calculator account for origination fees, taxes, or insurance?▾
No. Enter just the principal you're borrowing and the headline interest rate. Origination fees, GAP insurance on auto loans, taxes, and other charges should be assessed separately when comparing offers.
How does this affect my credit score?▾
Taking out a new loan typically dings your score short-term (hard inquiry, new account) but improves it over the medium term as you build payment history. Paying off early is good for your credit utilization but ends a positive tradeline — net effect is usually small. This calculator does not model credit-score effects.
What if I miss a payment?▾
Missed payments trigger fees and harm your credit report (typically reported once 30+ days late). If you're struggling, contact the lender about hardship programs, then consider free non-profit credit counseling (NFCC.org). This calculator assumes the schedule runs to completion.