Formula
Loan repayment formula
Payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1]
- P is the loan principal.
- r is the periodic interest rate.
- n is the number of repayment periods.
- The result shows the fixed periodic payment needed to amortize the loan.
Finance Calculator
Loan Repayment Calculator
Calculate monthly loan repayments, total interest, and total repayment cost for personal loans, auto loans, and other fixed-term borrowing.
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Example scenarios
Use it like a decision tool
Car loan comparison
$28,000 loan · 6.8% APR · 5 years
A slightly shorter term can often save more than negotiating a small monthly payment difference.
Personal loan trade-off
$12,000 loan · compare 3 years vs. 5 years
This shows the real price of stretching payments for near-term cash-flow relief.
FAQ
Common questions
Is this only for personal loans?
No. It works for many fixed-payment loans including car loans, installment loans, and other amortizing debt.
Why does total repayment rise so much with longer terms?
Because interest has more time to accumulate. Lower monthly payments usually mean higher lifetime borrowing cost.
Should I compare APR or monthly payment first?
Start with monthly affordability, then compare APR and total repayment to understand the full borrowing cost.
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