Loan Repayment Calculator
Calculate your loan repayment schedule, monthly payments, total interest, and view the complete amortization table.
Optional Extra Payment
Payment Summary
Amortization Schedule
| Payment # | Date | Payment | Principal | Interest | Balance |
|---|---|---|---|---|---|
| Enter loan details and click calculate to see schedule | |||||
Understanding Loan Repayment
A loan repayment calculator helps you understand exactly how much you'll pay each month and how your payments are allocated between principal and interest over time. This is essential for budgeting and understanding the true cost of borrowing.
How Loan Payments Work
Early Payments
- Most of payment goes to interest
- Little principal reduction
- Balance decreases slowly
- Interest portion is highest
Later Payments
- More payment goes to principal
- Interest portion decreases
- Balance reduces faster
- Loan pays off quicker
Factors Affecting Your Payment
| Factor | Higher Value = | Impact on Payment |
|---|---|---|
| Loan Amount | Higher principal | Higher monthly payment |
| Interest Rate | Higher rate | Higher monthly payment |
| Loan Term | Longer term | Lower monthly payment |
| Extra Payments | More extra payments | Faster payoff, less interest |
Loan Repayment Strategies
Ways to Pay Less Interest
Make Extra Payments
Even small extra payments reduce interest and shorten term
Bi-weekly Payments
Pay half payment every two weeks = 26 half-payments/year
Round Up Payments
Round monthly payment up to nearest $50 or $100
Annual Escalation
Increase payments by 3-5% each year
Recast Your Loan
Make large payment, get new payment based on lower balance
Refinance
Get lower rate, but watch for fees and term extension
Understanding Amortization
$200,000 Loan at 6% for 30 Years
| Year | Beginning Balance | Total Paid | Principal Paid | Interest Paid | Ending Balance |
|---|---|---|---|---|---|
| 1 | $200,000 | $11,983 | $1,983 | $10,000 | $198,017 |
| 5 | $185,530 | $59,915 | $14,470 | $45,445 | $185,530 |
| 10 | $167,253 | $119,830 | $32,747 | $87,083 | $167,253 |
| 30 | $0 | $359,790 | $200,000 | $159,790 | $0 |
*Example shows how interest dominates early payments and principal reduction accelerates later
Key Takeaways for Loan Repayment
- Most of your early payments go toward interest, not principal
- Extra payments save significant interest and shorten loan term
- Longer loan terms mean lower monthly payments but more total interest
- Review your amortization schedule regularly to track progress
- Consider making payments bi-weekly to reduce interest
- Small rate differences can have big impacts on total cost
- Always compare the total cost, not just monthly payments
- Prepayment penalties can make extra payments costly