Loan Repayment Calculator

  • Enter your Loan Amount, Annual Interest Rate, Loan Term, and Extra Payment (if any).
  • Click "Calculate" to see the loan repayment details.
  • Your calculation history will be displayed below.
  • Click on a history entry to populate the form with the saved values.
  • Click "Clear Form" to reset the form.
  • Click "Copy Results" to copy the current calculation results to the clipboard.

Loan Repayment Results

Monthly Payment:

Total Payment:

Total Interest Paid:

Loan Payoff Date:

Calculation History


    A Loan Repayment Calculator is a valuable financial tool that helps individuals and businesses determine the monthly or periodic payments required to repay a loan over a specified period. It plays a crucial role in financial planning, allowing borrowers to assess the affordability of loans and make informed decisions.

    The Basic Formula

    The fundamental formula behind a Loan Repayment Calculator is the amortization formula. This formula calculates the periodic payment required to fully repay a loan over a given period while considering the principal amount, interest rate, and loan term. The formula is as follows:

    PMT = P * (r * (1 + r)^n) / ((1 + r)^n – 1)


    • PMT is the monthly payment or periodic payment.
    • P is the principal loan amount.
    • r is the monthly interest rate (annual interest rate divided by 12).
    • n is the total number of payments (loan term in months).

    Example Calculation

    Let’s consider an example to better understand how the Loan Repayment Calculator works. Suppose you borrow $10,000 with an annual interest rate of 5% for a 5-year term (60 months).

    1. Convert the annual interest rate to a monthly rate:
      r = 0.05 / 12 = 0.00416667
    2. Calculate the total number of payments:
      n = 5 years * 12 months/year = 60 months
    3. Apply the formula:PMT = 10000 * (0.00416667 * (1 + 0.00416667)^60) / ((1 + 0.00416667)^60 – 1)PMT ≈ $188.71

    So, your monthly payment to repay the $10,000 loan over 5 years at a 5% annual interest rate is approximately $188.71.

    Real-World Use Cases

    Personal Finance

    1. Mortgages: Loan Repayment Calculators are commonly used in the real estate industry to help potential homebuyers estimate their monthly mortgage payments. This helps them determine if a particular home is within their budget.
    2. Auto Loans: When purchasing a car, borrowers can use these calculators to assess their monthly car loan payments, allowing them to choose a suitable loan term and interest rate.
    3. Student Loans: Students and their families use Loan Repayment Calculators to plan for the repayment of student loans, understanding the impact of interest rates and terms on their monthly expenses.

    Business Finance

    1. Business Loans: Companies utilize Loan Repayment Calculators to analyze the feasibility of taking out loans for expansion, equipment purchases, or working capital. It helps in budgeting and financial forecasting.
    2. Commercial Real Estate: Real estate developers and investors use these calculators to assess the financial viability of commercial property investments and the potential return on investment.
    3. Equipment Financing: Businesses looking to acquire equipment rely on Loan Repayment Calculators to determine the financial implications of leasing or taking out loans for equipment purchases.


    In conclusion, the Loan Repayment Calculator is a powerful financial tool that simplifies the complex task of calculating loan payments. Its underlying amortization formula provides borrowers and businesses with the means to make informed decisions about their financial commitments.


    1. Leach, J. (2018). Financial Mathematics: A Practical Guide for Actuaries and Other Business Professionals. CRC Press.
    2. Fabozzi, F. J., Neave, E. H., & Zhou, G. (2002). Financial Models with Levy Processes and Volatility Clustering. John Wiley & Sons.
    3. Smith, W. B. (2006). Principles of Mathematics of Operations Research. Princeton University Press.

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    Hi! I'm Nidhi.

    Here at the EHL, it's all about delicious, easy recipes for casual entertaining. So come and join me at the beach, relax and enjoy the food.

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