Loan Repayment Calculator

Calculate how many months it will take to fully repay your loan based on the loan amount, interest rate, and your monthly payment

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Repayment Timeline

How the Repayment Calculator Works

This calculator determines how many months it will take to repay a loan based on the loan amount, annual interest rate, and monthly payment amount.

The calculation uses the formula for the number of periods in an annuity:

n = log(PMT / (PMT - PV × r)) / log(1 + r)

Where:

  • n = number of months
  • PMT = monthly payment amount
  • PV = present value (loan amount)
  • r = monthly interest rate (annual rate ÷ 12)

If the monthly payment is less than or equal to the accrued interest, the loan will never be fully repaid, and the calculator will display an error message.

Why Use This Calculator?

Understanding your repayment timeline helps you:

  • Plan your budget effectively
  • See how increasing payments reduces loan term
  • Compare different loan options
  • Visualize the impact of interest rates on repayment

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Frequently Asked Questions

What if my monthly payment is less than the interest?

If your monthly payment is less than or equal to the monthly interest accrued, your loan balance will never decrease. In fact, it may continue to grow. You'll need to increase your monthly payment to make progress on paying down the principal.

Can I make extra payments to pay off my loan faster?

Yes, making extra payments can significantly reduce your repayment time and the total interest paid. Even small additional payments applied directly to the principal can make a big difference over the life of the loan.

How does the interest rate affect my repayment timeline?

Higher interest rates mean more of your payment goes toward interest rather than principal, extending your repayment period. Even a small difference in interest rate can add months or years to your loan term and significantly increase the total amount you pay.

Are the results from this calculator accurate?

This calculator provides a close estimate of your repayment timeline. Actual results may vary slightly based on your lender's specific calculation methods, payment processing dates, and whether interest is compounded daily or monthly.

What's the difference between principal and interest?

The principal is the original amount you borrowed. Interest is the cost of borrowing that money, calculated as a percentage of the principal. In the early stages of a loan, most of your payment goes toward interest rather than reducing the principal.

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