Loan Repayment Calculator
Input a loan amount, annual interest rate, and term in months to calculate your fixed monthly payment, total amount paid, and total interest charged. Includes a year-by-year amortisation breakdown.
How amortization actually works
A fixed-rate loan doesn't split your payment evenly between principal and interest — early payments are mostly interest, and that shifts toward principal as the balance shrinks. On a $200,000 loan at 5.5% over 25 years, the very first payment of $1,228 splits into roughly $917 interest and $312 principal; by the last few years, that ratio flips almost completely. This is why paying off a loan two years early saves far more in interest than paying two years' worth of payments near the end of the term — the earlier payments are carrying more interest weight.
Worked example
Take a $200,000 loan at 5.5% annual interest over 25 years (300 months). Monthly payment works out to $1,228.17. Over the full term you pay $368,452.50 total — meaning $168,452.50 of that is interest, not principal. That's the real cost of financing: on this fairly typical loan, interest adds more than 84% on top of what you borrowed. A shorter term or a lower rate reduces that multiplier fast; try the same $200,000 at 15 years instead of 25 and total interest drops from $168,452.50 to $94,150.04 — a 44% reduction — even though the monthly payment only rises from $1,228.17 to $1,634.17.
Frequently asked questions
What's the difference between the interest rate and APR?
The interest rate is just the cost of borrowing the principal. APR (annual percentage rate) usually also folds in lender fees and other loan costs, so it's typically a bit higher than the plain interest rate. This calculator uses the interest rate directly — if you only have an APR quote, it'll be close enough for planning purposes, but check your loan documents for the exact interest rate if you need a precise number.
What happens if I make extra payments?
Extra payments go straight to principal, which reduces the balance that future interest is calculated on — so they save more than they cost, and the effect compounds the earlier in the loan you make them. This calculator shows the standard fixed schedule; for a tool that models extra payments and different debt strategies, see the Debt Payoff Calculator.
Is this the same as an EMI calculator?
Yes — EMI (equated monthly installment) is the term commonly used in India and parts of Asia for exactly this: a fixed monthly loan payment. The math is identical.
Does this include property tax, insurance, or PMI?
No — this calculates principal and interest only (the "P&I" part of a mortgage payment). If you're budgeting for a mortgage specifically, your actual monthly payment will usually be higher once taxes, homeowners insurance, and (if applicable) mortgage insurance are added.