calculate-loan

01 Loan payments

Total Loan Repayment Calculator: Payment and Interest

Calculator No. 01-6947 · Updated · Formula and assumptions shown below

Monthly payment $405.53
Total repayment
$24,331.80
= Monthly payment × loan term × 12
Total interest
$4,331.80
= Total repayment − loan amount
Loan amount
$20,000
Input
You enter
Loan amount ($), Interest rate (APR) (%), Loan term (years)
You get
Monthly payment ($), Total repayment ($), Total interest ($)
Rounding
2 dp

Estimate for education, not financial advice. The result follows from the numbers you enter and the formula shown. It is not a quote or an offer, and it does not include fees, taxes or insurance unless the calculator asks for them. Ask your lender for the exact figures.

A total loan repayment calculator estimates how much you will pay over a fixed-term loan by adding the scheduled monthly payments. Enter the loan amount, annual percentage rate (APR), and term to see the monthly payment and total interest; total repayment is the monthly payment multiplied by the number of payments.

Formula

For a fixed-rate loan with equal monthly payments, the payment is calculated using the standard amortization formula:

PMT = P × r ÷ [1 − (1 + r)−n]

  • P is the amount borrowed, in dollars.
  • r is the monthly interest rate, calculated as APR ÷ 1,200. For an 8% APR, r = 0.08 ÷ 12, or about 0.006667 per month.
  • n is the number of monthly payments, calculated as the loan term in years × 12.
  • PMT is the monthly payment, in dollars. This calculator rounds it to the nearest cent before calculating totals.

Total repayment = PMT × n. Total interest = total repayment − P. Because totals use the rounded monthly payment, they represent the sum of the displayed scheduled payments. A lender’s final payment can differ slightly if it adjusts for exact payment dates, rounding, or account-specific terms.

Worked Example

Using the calculator’s default inputs—$20,000 borrowed, 8% APR, and a five-year term:

  1. Convert the annual APR to a monthly rate: 8 ÷ 1,200 = 0.0066667.
  2. Convert the term to payments: 5 × 12 = 60 monthly payments.
  3. Apply the payment formula: $20,000 × 0.0066667 ÷ [1 − (1.0066667)−60] = approximately $405.53 per month, rounded to cents.
  4. Multiply the rounded payment by the number of payments: $405.53 × 60 = $24,331.80 total repayment.
  5. Subtract the amount borrowed: $24,331.80 − $20,000 = $4,331.80 total interest.

Assumptions

  • The interest rate stays fixed for the entire loan term.
  • Payments are equal, made monthly, and made at the end of each monthly period.
  • Interest is calculated monthly using APR divided by 12; this is a standard estimate, not a lender-specific daily-interest calculation.
  • The estimate excludes fees, taxes, insurance, PMI, escrow, late charges, and optional products. Include a fee in the amount borrowed only if it is actually financed, and check the loan documents for its treatment.

How to Use the Result

The monthly payment is the modeled amount due each month under the entered rate and term. Total repayment is the sum of those payments, including both principal and interest. Total interest isolates the amount above the original loan principal in this simplified schedule.

These figures answer different questions. For example, the monthly payment describes the regular installment, while total repayment describes the cumulative scheduled outlay. A longer term usually spreads repayment across more installments and, when the rate is positive, accrues interest for longer. The precise difference depends on the principal, APR, term, and payment schedule; use the calculator’s inputs rather than assuming a particular loan quote.

To use a lender’s figures, enter the amount actually financed, not necessarily the advertised purchase price. If fees are added to the balance, the financed amount may be higher than the cash price or amount received. Enter the stated annual APR as a percentage, such as 8 for 8%, rather than as a decimal such as 0.08. The calculator converts the annual percentage to a monthly rate internally.

What the Estimate Leaves Out

A repayment calculator models the inputs supplied; it does not determine the lender’s exact contract balance. APR may reflect certain borrowing costs under the lender’s disclosure, but this calculator does not separately model charges, the timing of disbursement, or how fees are collected. It also does not include variable-rate changes, skipped or irregular payments, payment holidays, extra principal payments, or a final payment adjusted for rounding.

Some borrowing arrangements calculate interest daily or use payment dates that do not line up with full monthly periods. In those cases, the actual interest charged can differ from a monthly amortization estimate. A variable rate can also change the payment or payoff schedule. Use the rate and terms applicable to the specific loan, and consult its disclosure or account statement for exact figures.

Common Input Mistakes

  • Entering APR as a decimal: Type 8 for 8%, not 0.08. The calculator divides the percentage by 1,200 to obtain a monthly rate.
  • Using the wrong principal: The formula needs the amount financed or borrowed. If a fee is financed, it may form part of that balance; do not add it twice.
  • Confusing years and months: The term field is in years, and the calculator multiplies it by 12. A five-year term means 60 payments.
  • Expecting a payoff quote: Total repayment is a scheduled estimate, not the amount needed to settle a loan on a particular date. Accrued interest, fees, payment history, and contract terms can affect a payoff figure.

Rounding matters most when interpreting totals: the payment is rounded to cents, then multiplied by the number of installments. A lender may use more precise internal values or adjust the last payment, so a small difference is possible even when the entered terms match.

Frequently Asked Questions

How do I calculate total loan repayment?
Calculate the fixed monthly payment from the principal, monthly interest rate, and number of payments, then multiply that payment by the number of payments. This calculator performs those steps and also shows estimated total interest.

Is total repayment the same as total interest?
No. Total repayment includes the principal borrowed and the interest paid. Total interest is the difference between total repayment and the original principal in this estimate.

Does a total loan repayment calculator include fees?
Not unless they are reflected in the loan amount or separately included by the calculator. This calculator has no fee input, so check the lender’s disclosure for charges and how they are paid.

Why is my lender’s payment different?
The quoted payment may use a different balance, rate, term, payment date, fee treatment, or interest calculation. Compare the inputs and the lender’s disclosed schedule; this calculator assumes fixed-rate monthly amortization.

Can I use this for a variable-rate loan?
Only as a hypothetical estimate at the APR entered. It assumes that rate remains unchanged for the full term and does not project future rate changes.

This result is an estimate, and the lender’s disclosure gives the exact figures.

Related

Formula used
in p | Loan amount | $ | 20000 | 1 | 100000000
in apr | Interest rate (APR) | % | 8 | 0.01 | 100
in yrs | Loan term | years | 5 | 0.0833 | 50
out pmt | Monthly payment | $ | round(p * (apr / 1200) / (1 - (1 + apr / 1200) ^ -(yrs * 12)), 2) | 2
out tot | Total repayment | $ | pmt * yrs * 12 | 2
out int | Total interest | $ | tot - p | 2

Each line is one input (in, sel, list) or one result (out: label, unit, formula, decimals). How the calculators work

Method: the standard loan formula for this calculation, fixed rate and monthly compounding unless stated, rounded as each result states. Not financial advice; no lender, rate or product is recommended. See formulas and assumptions, the disclaimer or report an error.

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