Loan Repayment Calculator
Compare how different loan terms affect the monthly payment and total cost. Enter a loan amount and rate, and the calculator shows the payment, total interest and total paid for several common terms side by side.
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The term-length trade-off
Every extra year of term reduces the monthly payment but increases the total interest paid. A shorter term means higher monthly cost but much less interest. The best term balances affordable monthlies against the total cost of borrowing.
As a rough guide, doubling the term roughly doubles the total interest while cutting the monthly payment by about 40%.
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Frequently asked questions
Yes, if the loan's interest rate is higher than what you could earn by investing the same money (after tax). Every extra payment saves interest at the loan's rate, which is a guaranteed return. If the loan rate is very low, investing may come out ahead — but the certainty of a paid-off loan has value too.
Terms vary. Many mortgages in the UK allow 10% overpayment per year without penalty; US mortgages often allow unlimited extra principal. Personal and auto loans may have early-repayment penalties. Read the loan terms or ask the lender before making large overpayments.