What Is a Repayment Calculator?
A repayment calculator projects your full loan repayment schedule year by year, showing exactly how much goes to principal versus interest each year, and how extra payments accelerate payoff.
How to Use the Repayment Calculator
- Enter your loan amount, interest rate, and term.
- Optionally add an extra monthly payment.
- View your monthly payment and full yearly repayment schedule.
Repayment Formula
Worked Example
Monthly payment: approximately $390
Total repaid over 7 years: approximately $32,760
Understanding Your Results
The repayment schedule shows how your balance declines each year — early years pay mostly interest, while later years pay mostly principal, a natural feature of amortized loans. Adding extra payments shifts more toward principal, shortening the actual payoff time.
Common Mistakes to Avoid
- Not confirming with your lender that extra payments apply to principal rather than being held as early future payments.
- Underestimating how much extra payments can shorten a loan's actual payoff time.
Frequently Asked Questions
Each period, interest is calculated on the remaining balance and added to the required payment; the rest reduces principal, repeating until the balance reaches zero.
Typically, extra payments applied to principal shorten the loan's payoff time while your required minimum monthly payment stays the same, unless you specifically request a re-amortization from your lender.
Interest is calculated on the outstanding balance, which is highest early in the loan — as the balance shrinks, less interest accrues and more of each payment goes to principal.
You can view it here and copy the numbers as needed; for full amortization tables with more detail, see our dedicated Amortization Calculator.
For most loans without prepayment penalties, yes — extra principal payments reduce total interest and payoff time. Check your loan agreement for any prepayment penalty clauses first.