Finance
Loan Repayment Calculator
Estimate repayments for personal, auto, or other fixed-rate loans.
Inputs
Results
Useful next checks
- Compare a few scenarios before making a decision.
- Check rates, fees, tax, and timing outside the estimate.
- Use the explanation below to understand the formula.
Intro
Use this loan repayment calculator to estimate monthly repayments, total repaid, and interest cost for a fixed-rate loan. Enter the amount borrowed, annual interest rate, and repayment term to compare personal, auto, or other instalment loans.
What this loan calculator does
The calculator shows the estimated monthly payment for a loan with equal monthly repayments. It also helps you understand how much interest may be paid across the full term.
It is useful for questions such as:
- What monthly payment would a loan create?
- How much interest could I pay over the term?
- How does a shorter or longer term change the payment?
- What happens if the interest rate changes?
How it works
The tool uses a standard amortized loan formula. The loan amount is repaid over a fixed number of months, and interest is charged using the monthly equivalent of the annual rate.
The same repayment structure is commonly used for fixed personal loans and many car loans. Early in the term, more of each payment goes toward interest. Later, more of each payment reduces the balance.
Example calculation
For a 15,000 loan over 5 years at 7% annual interest, the calculator uses 60 monthly payments. It estimates the monthly payment, multiplies that by 60 to show the total repaid, and subtracts the original 15,000 to estimate total interest.
Try a 3-year term and a 7-year term with the same amount and rate. The shorter term usually has a higher monthly payment but lower total interest.
How to use the result
Use the monthly payment to check affordability, then look at total interest to understand the cost of borrowing. A lower monthly payment is not always cheaper if it comes from stretching the loan over more years.
If you are comparing a home loan, use the Mortgage Calculator. If you are comparing saving instead of borrowing, use the Compound Interest Calculator.
Assumptions and limitations
- The calculator assumes a fixed interest rate and equal monthly payments.
- It does not include arrangement fees, late fees, insurance, taxes, or early repayment charges.
- If a lender charges fees upfront, add them to the loan amount to estimate their impact.
- Variable-rate loans may become more expensive or cheaper over time.
- This is an educational estimate, not a loan approval or financial advice.
FAQs
- Can I use this for a car loan? Yes, if the loan has fixed monthly repayments and a fixed interest rate.
- Why does total interest change with the term? A longer term gives interest more months to accrue, even if the monthly payment is lower.
- Does this calculate APR exactly? No. It uses the interest rate you enter and does not model every lender fee or APR rule.
- Can the payment change in real life? Yes, especially for variable-rate loans or loans with fees, penalties, or payment holidays.
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Frequently asked questions
What repayment method is used?
The calculator uses a standard amortized loan formula for fixed monthly repayments.
Does it include fees?
No. Add fees to the loan amount if you want them reflected in the estimate.