Loan Repayment Calculator
Calculate your monthly payments, total interest, and overall cost of borrowing. See how loan terms and interest rates impact your long-term finances.
How Loan Payments Work
Every monthly payment includes two parts: interest (the cost to borrow) and principal (the amount you still owe). Early in the loan, more of your payment goes toward interest. As the balance shrinks, a growing share goes toward principal — that’s how amortization works in your favor over time.
What Drives Your Monthly Payment
- Loan Amount — the total you’re borrowing.
- Interest Rate — higher rates increase monthly cost and total interest.
- Term Length — longer terms lower the payment but raise total interest paid.
Smart Ways to Pay Less Interest
Small moves can have a big impact over the life of a loan. Consider rounding up your payment, making one extra payment per year, or switching to bi-weekly payments. If interest rates drop, refinancing to a lower rate or shorter term can reduce total interest and shorten your payoff timeline.
How to Use This Calculator
- Enter your loan amount, annual interest rate, and loan term in years.
- Click Calculate to see your monthly payment, total interest, and total amount paid.
- Experiment with different terms or rates to compare scenarios before you commit.
💡 FinFormulas focuses on clarity first — simple tools that help you make confident, informed decisions with your money.