Loan Repayment Calculator
Enter your details below to calculate repayment.
Results Overview
Time to Pay Off
Total Interest
Total Repayment
How to Use This Tool
Stop guessing when you'll be debt-free. We've designed this tool to give you a clear timeline based on your budget.
- 1
Enter Balance
Input the total amount you currently owe.
- 2
Input Rate
Enter your APR (Annual Percentage Rate).
- 3
Set Payment
Type in what you can afford to pay monthly.
The Math Behind the Magic
This tool calculates Amortization. Every payment you make is split into two parts:
Interest Payment
Money paid to the bank for borrowing.
Principal Payment
Money that actually reduces your debt.
Frequently Asked Questions
Why does it say 'Increase Payment'?
If your payment is too low, it might not cover the monthly interest. This causes your debt to grow instead of shrink. You must pay more than the interest amount to make progress.
Does this work for mortgages?
Yes, for the loan portion. However, remember that most mortgage payments also include escrow costs like property taxes and insurance, which this calculator does not include.
Why is the Total Interest so high?
Compound interest adds up quickly over time. The longer you take to pay off a loan, the more interest accumulates on the remaining balance every single month.
Can I use this for credit cards?
Absolutely. This is ideal for credit card payoff planning. Just input your current card balance and the APR found on your monthly statement.
Strategies for Faster Repayment
Getting out of debt is less about math and more about momentum. While our Loan Repayment Calculatorshows you the numbers, your strategy determines your success. Simply paying the minimum amount due every month is the slowest and most expensive way to handle debt.
This guide explores proven methods to reduce your loan term, save on interest, and regain your financial freedom.
The Avalanche Method
Best for: People who love math and efficiency.
List your debts from Highest Interest Rate to lowest. Pay minimums on everything else, but throw every extra dollar at the debt with the highest rate. This method mathematically saves you the most money over time.
The Snowball Method
Best for: People who need motivation.
List your debts from Smallest Balance to largest. Pay off the smallest debt completely first. The psychological win of eliminating a bill fuels you to tackle the next one.
The Magic of "Principal-Only" Payments
Most loans are "front-loaded" with interest. In the early years, the majority of your payment goes to the bank's profit, not your debt.
By making an extra payment specifically designated as "Principal Only," you bypass the interest calculation entirely. This money goes 100% toward reducing your balance. A reduced balance generates less interest next month, creating a compounding effect of savings.
*Note: Always ensure your lender applies extra money to the principal, not to "future payments."
Repayment FAQs
What are Bi-Weekly Payments?
Instead of paying monthly, you pay half your payment every two weeks. Since there are 52 weeks in a year, you end up making 26 half-payments, which equals 13 full monthly payments. This "extra" payment each year can shorten a 30-year mortgage by 4-5 years.
Should I invest or pay off debt?
Compare the interest rates. If your debt costs 15% (credit cards) and the stock market earns 8%, pay the debt. If your mortgage is 3% and the market earns 8%, investing might be mathematically better—though being debt-free offers peace of mind.
What happens if I miss a payment?
Missing a payment usually incurs a late fee. If you are more than 30 days late, it is reported to credit bureaus, which can significantly damage your credit score. If you are struggling, contact your lender immediately to discuss hardship options.