Calculate your loan repayments, total interest, and see a detailed amortization schedule with our easy-to-use calculator.
A repayment calculator helps you determine how much you'll need to pay each month to repay a loan within a specific timeframe. It takes into account the principal amount, interest rate, and loan term.
The calculator uses the standard formula for calculating fixed monthly loan payments. This formula considers the time value of money, ensuring that each payment contributes to both interest and principal reduction.
In the initial stages of repayment, a larger portion of your payment goes toward interest. As you continue making payments, the portion allocated to the principal increases.
Understanding your repayment schedule can help you make informed financial decisions, plan your budget, and potentially save money by making extra payments toward your principal.
Where:
M = Monthly payment
P = Loan principal
r = Monthly interest rate
n = Total number of payments