Loan Repayment Calculator
This loan repayment calculator calculates your monthly payment and the cost of… go up more instructions
repay your loan on a given date. Simply enter the amount owed, the interest rate and the duration. Then click on the “Calculate loan repayment” button to get your answer.
For more credit, this calculator also tells you how much you can save by making payments every two weeks to pay off your loan.
Finally, if this calculator is not exactly what you are looking for, try one of the other 6 loan calculators or 11 debt repayment calculators, including the very popular calculator of debt calculation. One of these calculators is sure to meet your needs.
See how much you could save with a personal loan
How much will your monthly payments and interest cost if you repay your loan on a given date?
Repayment of a loan is difficult without a goal.
When you set a repayment target for your loan, you have the benefit of knowing how much your monthly payments will cost and the total interest charges to repay your loan on a given date.
This loan repayment calculator facilitates the calculation by determining all this for you. It even provides results for bi-weekly payments to help borrowers who are paid every two weeks rather than every month.
Simply enter the amount you owe, the annual interest rate and the number of months you want to repay your loan. The calculator does the rest!
Below you will find more information about loans, the repayment process and tips on best practices to help you save money and avoid obvious mistakes during the repayment process.
Many people take out loans to buy houses, vehicles, furniture and anything else they can afford. But that does not mean it’s the smartest way to buy things. Before borrowing money, consider the costs.
The definition of a loan is a borrowed thing, especially a sum of money that must be repaid with interest. The key point is that you will pay interest on the privilege to borrow money, which will increase the total cost of the item you have purchased.
Assuming you make the prescribed payments consistently with the terms of the loan, your loan will be repaid at the end of the loan term.
However, in the absence of a prepayment penalty, you can also repay your loan faster than its term, which will save you interest costs.
This loan repayment calculator will help you determine how much you will pay in interest for the full term of the loan, as well as the amount of interest you will save by speeding up your payment plan by making payments every two weeks.
How often do I have to pay my loan?
Most loan payments are made monthly. However, many loans will allow you to pay instead every two weeks. This is especially beneficial if you are paid every two weeks rather than every month. In fact, if you repay your loan each time you receive a pay check every two weeks, you will get 26 payments, compared to 24 bi-weekly payment periods, ie 2 additional payments.
If you choose to pay every week, it’s like adding a 13th payment to your 12 standard payments. You’ll hardly notice a difference between a standard monthly payment schedule and a bi-weekly payment schedule – unless of course you make two payments a month instead of one. The cost difference will have little impact on your budget, but the acceleration of debt repayment can really help.
Keep in mind that bi-weekly payments mean you’ll pay less interest over the life of your loan, which will reduce the total cost of your loan. Try this loan repayment calculator to see how the numbers work in your situation.
Points to consider when accelerating payments
In addition to controlling your payment frequency, you can speed up your payments to pay less interest.
If you can afford to make additional payments, you will save thousands of euros in long-term interest. But before arranging additional payments, consider the following tips:
- Examine your loan agreement to see if your lender is imposing penalties on advance payments (most lenders do not).
- Make sure additional payments are applied to the principal. If your additional payment is credited on your next scheduled payment, it will defeat the intended purpose. Be sure to ask your lender how additional payments will apply if you are not sure.
- Before you set up a bi-weekly payment schedule, review your budget and see if you can afford these payments (as often as possible).
- If you accelerate your payments for the sole purpose of improving your credit score, then rethink your strategy. Your credit score is influenced more positively by the regular and punctual payment of your loan for a longer period than by an accelerated repayment schedule.
Everyone has different reasons for choosing how long it will take to pay back their loan, how much they can afford to pay monthly or every two months, and whether they want to accelerate their payments or not.
Some people want to repay their loans before retirement in order to enjoy their retirement years without debt. But for most people, they are simply tired of paying interest on their loans and that is why they want to get out of the debt trap.
When you repay your loan, you will again attract lenders if you need credit again, and your debt-to-income ratio will also save you thousands of dollars in interest. Repaying your loans increases your financial security by eliminating debt, which gives you peace of mind that affects many parts of life: your health, your relationships, opportunities, and so on.
Once you have repaid your loans and are ready to develop a realistic plan to achieve financial freedom, check out this heritage strategy course here.
In summary, the purpose of this loan repayment calculator is to determine the amount you have to pay to reach your goal. The faster you can free yourself from debt, the more wealth you can create.
Terms and definitions of the loan repayment calculator
- Loan – A borrowed thing, especially a sum of money that should be repaid with interest.
- Loan repayment – Make payments for a loan, usually over the life of the loan.
- Principal – The total amount owed or the total remaining balance of your loan.
- Interest – Money paid regularly at a particular rate for the use of money lent or to delay the repayment of a debt.
- Annual Interest Rate – The annual rate charged for the loan, expressed as a single percentage representing the actual annual cost of funds over the life of a loan.
- Number of months for payday loan? – Total number of months remaining on your loan or your loan repayment target, expressed in the number of months remaining.
- Monthly Payment Amount – The amount you would pay once a month for your loan according to a monthly payment schedule.
- Loan Duration – The total time required to repay an agreed loan with the lender.
- Bi – weekly Payment Amount – The amount you pay twice a month for your loan based on a bi-weekly payment schedule.
- Bi-monthly Interest Savings on Loan Repayment – The total amount you would have saved in interest if you made the bi-weekly payment until your loan was paid in full.