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Loan Repayment Calculator
Compare loans, optimize payments, and save thousands in interest
✓ Free Forever
✓ No Signup
✓ Smart Insights
How It Works
This advanced loan calculator goes beyond basic payment calculations to help you make smarter borrowing decisions. In standard mode, it calculates your monthly payment, total interest, and total repayment amount. The extra payment simulator shows exactly how much time and money you save by paying extra each month – even small additional payments can cut years off your loan.
Comparison mode lets you evaluate two loan offers side-by-side, highlighting which saves you more money over the life of the loan. This is crucial when refinancing or choosing between lenders with different rates and terms. The calculator accounts for the full cost of borrowing, not just the monthly payment, helping you see the true financial impact of your decision.
Use this tool to plan loan repayment strategies, evaluate refinancing opportunities, or understand how extra payments accelerate debt freedom and build equity faster.
Frequently Asked Questions
How are monthly payments calculated?
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Monthly payments use the amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is principal, r is monthly interest rate (annual rate / 12), and n is number of payments. This ensures payments are equal each month, with the ratio of interest to principal shifting over time. Early payments are mostly interest; later payments are mostly principal.
Should I pay extra toward my loan?
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Extra payments can save significant interest and shorten loan terms dramatically. However, consider: emergency fund adequacy (3-6 months expenses), higher-interest debt elsewhere, retirement contribution matching, and investment return potential. If your loan rate is below 4-5%, investing extra money might yield better returns than paying down the loan early.
When does refinancing make sense?
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Refinancing is worthwhile when you can reduce your interest rate by at least 0.5-1% and plan to keep the loan long enough to recoup closing costs (typically 2-5% of loan amount). Calculate the break-even point: closing costs divided by monthly savings. If you will keep the loan longer than the break-even period, refinancing saves money.
What is the difference between APR and interest rate?
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Interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus other costs like origination fees, points, and closing costs, expressed as a yearly rate. APR gives a more accurate picture of the true cost of the loan. Always compare APRs when shopping for loans, not just interest rates.
How can I pay off my loan faster?
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Strategies to accelerate payoff: make bi-weekly payments instead of monthly (equals 13 monthly payments per year), round up payments to the nearest $50 or $100, apply windfalls (bonuses, tax refunds) to principal, refinance to a shorter term if rates are favorable, or make one extra payment per year. Always specify extra payments go toward principal, not future payments.