About the Repayment Calculator
A repayment calculator works out the monthly repayment and total cost for a loan over a term in months. It is the tool for planning around any structured debt — personal loans, consolidation loans, or financing agreements.
The formula
M = P · [ r(1 + r)ⁿ ] / [ (1 + r)ⁿ − 1 ]P is the amount borrowed, r the monthly rate, and n the number of monthly repayments. Total repayment is the monthly figure multiplied by the number of months.
How to use this calculator
- 1Enter your Loan Amount ($). The field starts at
25000, which you can overwrite. - 2Enter your Annual Interest Rate (%). The field starts at
8, which you can overwrite. - 3Enter your Repayment Term (Months). The field starts at
60, which you can overwrite. - 4Read the result straight away — it recalculates as you type, so there is no button to press. Use Share to copy a link that reopens the page with your exact numbers filled in.
Worked example
| Input | Value |
|---|---|
| Loan Amount ($) | 25000 |
| Annual Interest Rate (%) | 8 |
| Repayment Term (Months) | 60 |
Result
Monthly Repayment: $506.91
Total Repayable: $30414.59
Total Interest: $5414.59
Balance After 6 Months: $22924.21
Those are the values the page loads with, so you can reproduce this result yourself and then change one field at a time to see what drives the outcome.
Understanding your result
Total repayment less the amount borrowed gives the cost of credit, which is the number worth comparing between offers. A 25,000 dollar loan at 8 percent over 60 months repays about 30,400 in total — 5,400 dollars for the use of the money.
Interest is charged on the declining balance, so overpayments reduce cost immediately rather than only shortening the term. Even modest regular overpayments compound their effect, because each one reduces the balance that all subsequent interest is calculated on.
Things worth knowing
- State explicitly that overpayments should reduce the balance rather than be held as advance payments.
- Total cost of credit, not the monthly figure, is the honest basis for comparing loans.
- Payment protection insurance is usually optional and often poor value. Check whether it has been added.
- Missing repayments damages your credit file and can trigger default charges quickly.
- If you are struggling, contact the lender before missing a payment. Restructuring is easier before default.
Frequently asked questions
How much will I repay in total?+
The monthly repayment multiplied by the number of months. The difference between that and the amount borrowed is the total cost of credit.
Can I overpay my loan?+
Usually yes, and it reduces interest immediately since interest accrues on the outstanding balance. Confirm there is no prepayment penalty and that the lender applies overpayments to principal.
What happens if I miss a repayment?+
Expect a late fee, a mark on your credit file, and possibly a higher rate. Repeated misses can trigger default and collection action. Contacting the lender early usually opens more options.
Should I choose a longer term for lower repayments?+
Only if the shorter term is genuinely unaffordable. A longer term lowers each payment but raises total interest, sometimes considerably.