Loan Repayment Calculator
Compare equal monthly payments with and without a lump-sum prepayment.
This uses a term-reduction method that keeps the regular monthly payment unchanged after prepayment. The initial interest rate is only an example. Check your lender's terms for actual rates, rounding, fees, insurance, and variable-rate changes.
Common values
About this tool
Calculate the monthly payment, total repayment, and total interest for a fixed-rate amortizing loan. Add a lump-sum prepayment in a chosen month to estimate the shorter payoff period and interest savings. Fees and insurance are not included.
An amortizing payment keeps principal plus interest level each month. The payment is derived from the monthly rate and number of payments, while interest is calculated on the remaining balance.
The lump sum is applied after the selected month's regular payment, with the original monthly payment retained to shorten the term. A payment-reduction prepayment would produce different results.
The estimate assumes a constant rate. Variable rates, balloon payments, daily interest, prepayment fees, guarantees, and insurance are excluded.
FAQ
- How is an equal monthly loan payment calculated?
- Principal, monthly interest rate, and payment count are used in the standard amortization formula that keeps principal plus interest nearly level. At 0% interest, principal is divided by payment count.
- How much can a prepayment shorten the term?
- The lump sum is applied after the selected regular payment, then the original monthly payment continues. The months saved depend on rate, remaining balance, amount, and timing.
- What is the difference between term reduction and payment reduction?
- Term reduction keeps the monthly payment and finishes earlier. Payment reduction keeps the term and lowers the payment; this tool models only term reduction.
- Does total repayment include loan fees?
- No. Guarantees, origination fees, insurance, future variable-rate changes, and prepayment fees are outside the estimate.
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