Loan Repayment Calculator

A loan repayment calculator helps you determine your monthly payment amount and the total cost of borrowing for any type of loan. Whether you're considering a personal loan, auto loan, or any fixed-rate installment loan, this calculator provides the essential numbers you need to plan your finances.

By entering the loan amount, annual interest rate, and loan term, you can instantly see your monthly payment obligation, the total interest you'll pay over the life of the loan, and the total amount paid including both principal and interest. This information is critical for budgeting and comparing loan offers from different lenders.

Understanding your loan repayment schedule before borrowing helps you avoid overextending your finances. You can experiment with different loan terms and interest rates to find a payment plan that fits your budget while minimizing the total cost of borrowing.

1. Enter the loan amount — The total amount you plan to borrow.
2. Enter the annual interest rate — The yearly interest rate offered by the lender.
3. Enter the loan term in years — How many years you'll take to repay the loan.
4. Review your results — See the monthly payment, total interest, and total amount paid.

The monthly payment is calculated using the standard amortization formula:

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Where: M = monthly payment, P = loan principal, r = monthly interest rate (annual rate / 12), n = total number of monthly payments (years × 12).

Example: A $25,000 loan at 5.5% for 5 years → r = 0.055/12 = 0.004583, n = 60. Monthly payment = $477.53.