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Loan Repayment Calculator

Calculate remaining balance, interest, payment and repayment progress including annual extra repayment.

Inputs

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Use this amortization calculator to estimate how your loan develops over time. It shows not only the remaining balance after the selected term, but also the monthly payment, annual regular payment, interest cost, repayment progress and the effect of annual extra repayments. This is especially useful for mortgages, refinancing and long-term loan planning.

Display currencyChoose the currency symbol for entered amounts and results. No exchange-rate conversion is applied.
UnitsChoose metric, US or UK units for distance, area, volume and car consumption.
$
The original loan principal before repayment and interest.
%
Use the real nominal or effective annual rate from your financing offer whenever possible.
%
A higher repayment rate usually increases the payment, but often reduces the remaining balance and interest cost.
years
The calculator shows what your loan looks like after this selected period.
$
Additional repayment at the end of each year that directly reduces the remaining balance.
Guidance

Loan Repayment Calculator: Actively control repayment, remaining debt and interest

Use the result as decision support, not as individual advice. For finance topics, scenarios, total cost, risk, term and personal affordability matter.

How to use the result better

  • Calculate conservative, realistic and optimistic cases.
  • Look beyond monthly values to total cost or final value.
  • Keep safety buffers before making a decision.

Common mistake

One attractive figure can mislead when fees, taxes, rate changes, volatility or long terms are ignored.

Is this financial advice?

No. It is an orientation tool and does not replace individual financial, tax or investment advice.

Why are scenarios so important?

Small changes in interest, return, term or costs can change the result significantly.

Next steps

Useful calculators to continue

After the result, related calculators help you understand costs, alternatives and next steps more clearly.

GuideRepayment planning: balance, loan term and interest costThe key points are costs, risks and monthly impact. Do not rely on one isolated value. Compare multiple scenarios to understand the effect of budget, comparison and long-term effects.
Plan betterCompare costs, returns and monthly burdens more clearly.
Check alternativesRelate results to saving, loans, income or investing.
Decide with confidenceUse multiple calculators before making financial decisions.

How to use the result well

  • Compare several scenarios: Change the key values and check how much the result changes.

  • Use related calculators: Decisions often become clearer when you also calculate costs, timeframes or alternatives.

Formula

How the result is calculated

Regular annual payment = loan amount × (interest rate + initial repayment rate)
Monthly payment = regular annual payment ÷ 12
Monthly interest = current remaining balance × annual interest rate ÷ 12
Monthly principal repayment = monthly payment − monthly interest
New remaining balance = previous remaining balance − principal repayment − extra repayment if applicable
The calculation uses a simplified annuity-style model with annual extra repayment at the end of each year.

Example

Worked example

Example: With a €100,000 loan, 3.5% interest, 2% initial repayment and a 20-year term, the regular monthly payment is about €458. Without or with only a small extra repayment, there is often still a noticeable remaining balance after 20 years. That is exactly where the calculator helps: it makes the impact of interest, repayment and extra payments much easier to understand.

What exactly does the amortization calculator estimate?

The calculator simulates how a loan balance declines over time. Interest is calculated regularly on the remaining balance, and the rest of the payment reduces the principal. At the end of the selected term, you can see the remaining balance and total interest paid so far.

Why is the remaining balance so important?

The remaining balance shows how much debt is still open after the selected period. This is especially important for property financing with fixed-rate periods, because refinancing is often needed afterward. Understanding the remaining balance early helps you plan more realistically.

What does initial repayment mean?

The initial repayment rate shows what share of the original loan amount is repaid in the first year in addition to interest. A higher repayment rate usually increases the starting payment, but often reduces the term, remaining balance and total interest cost.

How do extra repayments help?

Extra repayments reduce the remaining balance in addition to the regular payment. This usually lowers future interest cost as well. Even moderate annual extra repayments can make a noticeable difference over many years.

Why is the interest share so high at the beginning?

At the start, the remaining balance is still high. That is why a larger share of each payment goes to interest and a smaller share reduces the principal. As the balance declines, more of the payment goes toward actual repayment.

What is this calculator useful for in practice?

It is useful for first financing comparisons, estimating realistic monthly payments, evaluating different repayment rates and understanding how much extra repayments can help. It is especially practical when comparing several scenarios with different interest rates, terms and additional payments.

How should you interpret the result?

The monthly payment alone is not enough. The bigger picture matters: remaining balance, interest cost, repayment progress and extra repayments all interact. A low payment may feel comfortable in the short term, but can lead to a high remaining balance and higher long-term interest cost. A higher repayment rate can often be financially stronger if it still fits your budget.

FAQ

Frequently asked questions

What is an initial repayment rate?

It is the percentage of the original loan amount that you repay each year in addition to interest.

Why does the remaining balance decline more slowly at the beginning?

Because the interest portion of the payment is highest at the start, a smaller share initially goes toward reducing the principal.

How do extra repayments affect the loan?

Extra repayments reduce the remaining balance in addition to the regular payment. That usually lowers future interest cost as well.

Is a higher repayment rate always better?

It often reduces the term and remaining balance, but it also usually increases the regular payment. The key question is whether the payment still fits your long-term budget.

Can I use this calculator to prepare for refinancing?

Yes, at least roughly. The remaining balance after the selected period is an especially useful first reference point for that.

Does this calculator replace a real bank offer?

No. It is intended for general information and scenario planning. Contract details, fees, repayment changes and actual fixed-rate terms may differ in practice.

Why is the monthly payment constant here?

The calculator uses a simplified annuity-style model based on interest rate and initial repayment. That makes it practical for high-level financing comparisons.

Disclaimer

Important information

This calculator provides simplified model values and does not replace financing advice or binding loan calculations.