Loan Repayment Calculator
This loan repayment calculator figures your monthly payment and interest cost to payoff your loan by any given date. Simply enter the amount owed, interest rate, and term. Then click the "Calculate Loan Repayment" button to get your answer.
For extra credit, this calculator also shows you how much you can save by using biweekly payments to payoff your loan.
Finally, if this calculator isn't exactly what you are looking for then try one of 7 other loan calculators or 11 debt repayment calculators here including the popular debt snowball calculator. One of these calculators is certain to meet your needs.
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How Much Will Your Monthly Payment And Interest Cost Be If You Pay Off Your Loan By A Certain Date?
Loan repayment is difficult without a goal.
When you set a repayment goal for your loan it gives you the advantage of knowing how much your monthly payment and total interest costs will be so that you pay off your your loan by a given date.
This Loan Repayment Calculator makes the math easy by figuring it all out for you. It even provides results for bi-weekly payments to help borrowers who are paid every two weeks rather than monthly.
Simply enter the amount you owe, annual interest rate, and the number of months you want to pay off your loan within. The calculator does the rest!
Below is more information about loans, the repayment process, and some tips on best practices to help you save money and avoid obvious mistakes during the loan repayment process.
Many people take out loans to buy homes, vehicles, furniture, and anything else they can finance. But that doesn’t mean it’s the smartest way to purchase items. Before you borrow money, consider the costs.
The definition of a loan is a thing that is borrowed, especially a sum of money that must be paid back with interest. The key point is you will pay interest for the privilege of borrowing money which will increase the total cost for the item you purchased.
Assuming you consistently make the prescribed payments according to the loan terms then your loan will be paid off at the end of the loan term.
However, assuming there is no prepayment penalty, it is also possible for you to pay off your loan faster than the loan term thus saving interest costs.
This Loan Repayment Calculator will help you determine how much you will pay toward interest for the entire term of the loan, and it will also figure out how much interest you will save by accelerating your payment plan using bi-weekly payments.
How Frequently Should I Pay My Loan?
Most loan payments are made monthly. However, many loans will allow you to pay bi-weekly instead. This is particularly advantageous if you get paid every other week rather than monthly because it can significantly accelerate your debt payoff.
If you choose to pay on a bi-weekly basis, it is as if you’re adding a 13th payment to your standard 12 payments. You’ll barely feel a difference between a standard, monthly payment schedule and a bi-weekly payment schedule – except, of course, that you’ll be making two payments per month instead of one. The difference in cost will hardly affect your budget, but the acceleration in debt payoff can really help.
Keep in mind that making bi-weekly payments means you’ll pay less in interest over the course of your loan term reducing the total cost of your loan. Try this Loan Repayment Calculator to see the results for yourself.
Points To Consider When Accelerating Payments
In addition to controlling your payment frequency, you can accelerate your payments to pay less in interest.
If you can afford to make extra payments, you will save thousands of dollars in interest in the long run. But before you arrange for making extra payments, take into consideration the following tips:
Everyone has different reasons for choosing how long they will take to repay their loan, how much they can afford to pay monthly or bi-monthly, and if they will accelerate their payments or not.
Some people want to repay their loans before retirement so they can enjoy their retirement years debt free. But for most people, they are simply sick of paying their loans and that is why they want to get out from under the debt trap.
When you repay your loan, you don’t only make yourself attractive to lenders, but your debt-to-income ratio will also improve saving you thousands of dollars in interest. With paying off your loans comes a peace that touches many parts of life: your health, relationships, opportunities, and more.
Try out this Loan Repayment Calculator to determine how much you need to pay to reach your goal. The faster you’re able to become debt-free, the more wealth-building you can undertake.
Loan Repayment Calculator Terms & Definitions
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