Loan Repayment Calculator
Calculate your monthly loan payments, total interest, and repayment schedule for mortgages, auto loans, personal loans, and credit cards.
Results
With a loan amount of $10,000 at 5.5% interest for 5 years, your monthly payment will be $212.47. You will pay $2,748.23 in total interest over the life of the loan.
| # | Date | Payment | Principal | Interest | Balance |
|---|
About the Loan Repayment Calculator
The Repayment Calculator can be used to find the repayment amount or length of debts, such as credit cards, mortgages, auto loans, and personal loans. It can be utilized for both ongoing debts and new loans.
What is Repayment?
Repayment is the act of paying back money previously borrowed from a lender, and failure to repay debt can potentially force a person to declare bankruptcy and/or severely affect credit rating. The repayments of consumer loans are usually made in periodic payments that include some principal and interest.
Repayment Options
Fixed Loan Term: Choose this option to enter a fixed loan term. For instance, the calculator can be used to determine whether a 15-year or 30-year mortgage makes more sense, a common decision most people have to make when purchasing a house. The calculated results will display the monthly installment required to pay off the loan within the specified loan term.
Fixed Installments: Choose this option to enter a fixed amount to be paid each month until the loan and interest are paid in full. The calculated results will display the loan term required to pay off the loan at this monthly installment. For instance, this may be a set amount of disposable income determined by subtracting expenses from income that can be used to pay back a credit card balance.
Common Loan Types
Mortgages
In the U.S., mortgages are required to be repaid monthly using fixed or variable rates, or even switched from one to the other during the life of the loan. For fixed-rate mortgages, the monthly repayment amount is fixed throughout the loan term. Borrowers can choose to pay more (but not less) than the required repayment amount.
Auto Loans
Like mortgage loans, auto loans need to be repaid monthly, usually at fixed interest rates. Borrowers can also choose to pay more (but not less) than the required repayment amount.
Student Loans
In the United States, the government offers specialized plans that are geared specifically towards the repayment of federal student loans. Depending on the individual borrower, there are repayment plans that are income-based, plans that extend the term of the loan, or plans specifically for parents or graduate students.
Credit Cards
Credit card loans are considered revolving credit. The repayment of credit cards is different from typically structured amortized loans. Whereas the latter requires a set amount to be paid a month, the repayment of revolving credit is more flexible in that the amount can vary, though there is a minimum payment due on each credit card each month that must be met to avoid penalty.
How to Repay Loans Faster
Most people like the feeling of being debt-free. Listed below are some of the strategies to repay loans faster.
- Pay Extra: If there is no prepayment penalty involved, any extra money going towards a loan will be used to lower the principal amount due.
- Biweekly Payments: For loans that require monthly repayments, submitting half of the monthly payment every two weeks instead of one monthly payment can speed up the repayment of loans.
- Refinance: Loan refinancing involves taking out a new loan, often with more favorable terms, to replace an existing loan.