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Loan Repayment Calculator

Use our free loan repayment calculator to estimate your periodic payment amount, total interest paid, total amount repaid, and view a complete amortization schedule — all calculated instantly from your inputs.

Free to use No sign-up required Standard amortization formula Full amortization schedule

Calculate Your Loan Repayment

Enter your loan details below and click Calculate.

Your Results
Monthly Payment
—
Number of Payments
—
Total Amount Paid
—
Total Interest Paid
—
Amortization Schedule
# Payment Principal Interest Balance
Step-by-step guide

How to Use the Loan Repayment Calculator

The calculator is straightforward. Enter four pieces of information about your loan, click Calculate, and your results appear instantly.

Loan Amount

Enter the amount you plan to borrow (the principal). This is the original loan balance before any interest is added. For example, if you are borrowing $20,000, enter 20000.

Annual Interest Rate

Enter the annual interest rate as a percentage. For example, enter 8 for an 8% annual rate. The calculator converts this to the correct periodic rate automatically. You can also enter 0 for a 0% interest loan.

Loan Term

Enter the length of the loan and choose whether it is in years or months. For example, a 5-year loan equals 60 monthly payments. A 36-month loan equals 3 years.

Payment Frequency

Choose how often you will make payments: monthly (12 per year), biweekly (26 per year), or weekly (52 per year). More frequent payments can reduce the total interest paid over the life of the loan.

Understanding Your Results

After clicking Calculate, the following results are displayed:

Payment Amount

The estimated amount due each payment period — monthly, biweekly, or weekly — based on your inputs.

Number of Payments

The total number of individual payments you will make over the full loan term.

Total Amount Paid

The sum of all payments — principal plus total interest — over the entire loan term.

Total Interest Paid

The total interest cost over the full term. This is the difference between the total amount paid and the original principal.

Amortization Schedule

A payment-by-payment table showing how much of each payment goes toward principal, how much goes toward interest, and the remaining balance after each payment.

Quick Example

Suppose you enter a $15,000 loan at 6% annual interest over 3 years with monthly payments. The calculator applies the standard amortization formula to produce an estimated monthly payment, the number of payments (36), the total amount paid, and the total interest cost. The amortization schedule then shows how each of those 36 payments is split between principal and interest, with the remaining balance decreasing to zero by the final payment.

This is a general illustration only and is not an offer or quote from any lender.

Education

What Is Loan Repayment?

Loan repayment is the process of paying back the money you borrowed, along with the cost of borrowing — the interest. Understanding the key terms makes it easier to compare loan options and manage your finances.

Principal
The principal is the original amount of money you borrow. For example, if you take out a $20,000 loan, $20,000 is your principal. As you make payments, the outstanding principal decreases.
Interest
Interest is the cost the lender charges for lending you money. It is typically expressed as an annual percentage rate (APR). Each payment period, interest is calculated on the remaining principal balance.
Loan Term
The loan term is the length of time you have to repay the loan — for example, 5 years or 60 months. A shorter term means higher periodic payments but less total interest paid. A longer term means lower payments but potentially more total interest paid.
Payment Frequency
Payment frequency refers to how often you make a loan payment — monthly, biweekly (every two weeks), or weekly. More frequent payments can reduce the total interest paid because the outstanding balance decreases more quickly.
Total Repayment
Total repayment is the sum of all payments you make over the full loan term — the original principal plus all interest charged. This is how much the loan costs you in total.
Amortization
Amortization is the process of paying off a loan through regular, scheduled payments. In a standard amortizing loan, each payment covers both interest and principal. Early in the loan term, a larger proportion of each payment typically goes toward interest. Over time, a larger proportion goes toward reducing the principal.
Remaining Balance
The remaining balance (also called outstanding balance) is the amount of principal still owed after each payment. On a standard amortizing loan, the remaining balance decreases with each payment and reaches zero at the end of the loan term.
The formula

How Are Loan Payments Calculated?

Most fixed-rate loans use the standard amortizing loan payment formula to determine the regular payment amount required to fully repay the loan over the chosen term.

M = P × [ r(1+r)n ] ÷ [ (1+r)n − 1 ]
M
The periodic payment amount (e.g. monthly payment)
P
The principal — the original loan amount
r
The periodic interest rate (annual rate ÷ number of payment periods per year)
n
The total number of payments (loan term converted to the number of payment periods)

Converting the Annual Rate to a Periodic Rate

Interest rates are quoted annually, but payments may be made monthly, biweekly, or weekly. To apply the formula correctly, the annual interest rate must be converted to match the payment frequency:

  • Monthly: periodic rate = annual rate ÷ 12
  • Biweekly: periodic rate = annual rate ÷ 26
  • Weekly: periodic rate = annual rate ÷ 52

The total number of payments (n) is also converted to match the payment frequency. For example, a 5-year loan with monthly payments has n = 60; with biweekly payments it has n = 130; with weekly payments n = 260.

What About a 0% Interest Rate?

When the interest rate is 0%, the formula above involves a division by zero and cannot be applied directly. In this case, the loan payment is simply the principal divided by the total number of payments. Our calculator handles this automatically, so you can safely enter 0% and receive a correct result.

Good to know

Loan Repayment Facts You Should Know

Understanding how loans work can help you make more informed borrowing decisions. Here are some general facts about how loan repayment works.

  • A higher annual interest rate generally results in a higher total interest cost over the life of the loan, all else being equal.
  • A longer repayment term can reduce the size of each periodic payment, but it can also increase the total interest paid over the full term.
  • In a standard amortizing loan, each payment contains two components: a principal component and an interest component.
  • In the early stages of an amortizing loan, a larger portion of each payment is typically allocated to interest. As the outstanding balance decreases over time, more of each payment is applied to principal.
  • An amortization schedule shows how each payment is divided between principal and interest, and tracks the remaining balance after each payment.
  • Paying additional amounts toward principal — beyond the scheduled payment — may reduce the total interest paid and shorten the repayment period, subject to the terms of the specific loan agreement.
  • Actual lender payments may differ from calculator estimates due to fees, insurance, taxes, payment timing, compounding conventions, or other loan-specific terms not captured by the standard formula.
  • A lower interest rate generally reduces the total cost of borrowing, assuming all other loan terms remain the same.
What matters

Factors That Affect Your Loan Payment

Several variables influence the size of your loan payments and the total amount you will repay. Adjusting any of these factors in the calculator will immediately show you the impact on your estimated payments.

Loan Amount

A larger loan amount increases the payment because there is more principal to repay. All else being equal, doubling the loan amount approximately doubles the payment.

Interest Rate

A higher annual interest rate increases both the periodic payment and the total interest cost. Even a small difference in rate can significantly affect the total amount repaid on a large or long-term loan.

Loan Term

A longer loan term spreads the repayment over more payments, which can lower each individual payment. However, more interest typically accrues over a longer period, increasing the total cost.

Payment Frequency

Paying more frequently (e.g. biweekly instead of monthly) can reduce the outstanding balance more quickly, which may reduce the total interest paid over the loan term.

Fees and Other Costs

Lenders may charge origination fees, administration fees, or other costs that affect the true cost of a loan. These are not included in the standard amortization formula used by this calculator.

Additional Payments

Making extra payments toward the principal — where permitted by the loan agreement — may reduce the outstanding balance faster, potentially lowering the total interest paid and shortening the loan term.

Down Payment

For certain loans such as car loans or mortgages, a larger down payment reduces the amount that needs to be financed, resulting in a smaller principal and lower payments.

Worked example

Loan Repayment Example

The following is a hypothetical illustration to show how the calculator works. It is not an offer or quote from any lender.

Example: $20,000 Loan at 8% Over 5 Years

This is a hypothetical example for illustration only. It is not a lender quote, financial advice, or guarantee of any loan terms.
Loan amount (principal) $20,000.00
Annual interest rate 8%
Loan term 5 years (60 months)
Payment frequency Monthly
Estimated monthly payment ~$405.53
Total number of payments 60
Estimated total amount paid ~$24,331.80
Estimated total interest paid ~$4,331.80

This estimate is based on the standard amortizing loan payment formula. Actual lender payments may differ due to fees, compounding methods, insurance, payment timing, and other loan-specific terms. Use this calculator as a starting point for your own research. Always review the full terms of any loan offer from a lender before proceeding.

You can enter the same values into the calculator at the top of this page to verify and explore how changing any single variable — such as the interest rate or term — affects the estimated payment. You may also find our Personal Loan Calculator useful for exploring different personal loan scenarios.

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What's on this site

How the Calculators Fit Together

Each calculator on this website has its own dedicated page with its own tool, explanations, examples, and FAQ. The pages are designed to work independently so you can bookmark and return to the one that's most useful for your situation.

The main Loan Repayment Calculator on this page works for most general loan scenarios — personal loans, car loans, and any other fixed-rate, standard amortizing loan. The specialized calculators coming soon are tailored to specific use cases and include additional relevant inputs.

Loan Repayment Calculator (this page) Live Blog — articles about loans and repayment Live Personal Loan Calculator Coming soon Car Loan Calculator Coming soon Loan Affordability Calculator Coming soon Early Loan Payoff Calculator Coming soon

For articles about loans, borrowing, interest, and repayment strategies, visit our Blog.

Common questions

Frequently Asked Questions

Answers to common questions about loan repayment and how to use this calculator.

A loan repayment calculator is a tool that uses the standard amortizing loan payment formula to estimate your periodic payment amount — monthly, biweekly, or weekly — based on the loan amount, interest rate, and loan term you enter. It also calculates the total amount you will repay, the total interest cost, and can display an amortization schedule showing how each payment is allocated between principal and interest.
A monthly loan payment is calculated using the standard amortization formula: M = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where P is the principal, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. This formula produces a fixed payment that, when made consistently over the loan term, fully repays both the principal and interest by the final payment.
Yes, a longer loan term generally reduces the size of each periodic payment by spreading the repayment across more payments. However, because interest accrues over a longer period, a longer term typically results in a higher total amount of interest paid over the life of the loan. You can compare the effect of different terms by entering them into the calculator above.
Yes. A lower interest rate means less interest is charged each period, which reduces the total interest paid over the loan term and lowers the total amount repaid (principal plus interest). You can use the calculator to compare two different interest rate scenarios with the same principal and term to see the difference in total cost.
The principal is the original amount you borrowed. The interest is the cost charged by the lender for providing the loan. Each loan payment you make is split into two parts: a portion that reduces the outstanding principal balance, and a portion that covers the interest accrued during that payment period. In a standard amortizing loan, the interest portion of each payment decreases over time as the outstanding balance reduces.
An amortization schedule is a table that lists every scheduled payment over the life of a loan. For each payment, it shows the payment amount, the portion allocated to interest, the portion applied to the principal, and the remaining outstanding balance after that payment. The balance on the final row reaches zero, confirming that the loan is fully repaid. Our calculator displays the full amortization schedule after you click Calculate.
Whether you can pay off a loan early depends on the specific terms of your loan agreement. Many loans allow early repayment, and doing so can reduce the total interest you pay. Some loans include early repayment fees or penalties — check your loan contract or ask your lender before making additional payments. Our Early Loan Payoff Calculator can help you explore the potential impact of additional payments.
This calculator uses the standard amortizing loan formula, which is a common but simplified model. Actual lender payments may differ because lenders can apply different compounding methods, charge origination fees, insurance premiums, or administration fees, use specific rounding conventions, or structure repayment differently. Always review the full loan disclosure from your lender to understand the exact payment terms and total cost of your specific loan.
Yes. Enter 0 in the Annual Interest Rate field and the calculator will handle this correctly. When the interest rate is 0%, the payment is simply the principal divided by the number of payments, and the total interest paid will display as $0.00. The standard formula is not used in this case, as it would produce a division-by-zero error.
No. Calculator results are estimates based on the standard amortization formula and the inputs you provide. They are intended to help you understand and compare loan repayment concepts. A lender's final quote will be based on their specific underwriting criteria, the exact loan product, any applicable fees, and prevailing rates at the time of application. Always obtain a formal quote from a licensed lender before making any borrowing decisions.
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