Repayment Calculator

Calculate the fixed monthly repayment for a loan amount, rate, and term in months.

Repayment Calculator

Formula

PMT = P × r(1+r)^n / ((1+r)^n - 1), r = rate/12/100

Standard amortizing payment formula using monthly rate and term in months.

This repayment calculator returns the fixed monthly repayment for a loan amount, annual rate, and term in months. It uses standard amortization. The default 15000 at 7% for 60 months is about 297.02 per month.

Choose it when you think in repayment language and month based terms. For a nearby sample with different defaults, the payment calculator on this site uses another principal and rate set. Cross check loan sizing with the loan calculator or EMI style planning with the EMI calculator.

How the formula works

Monthly rate r = annual percent / 12 / 100. Payment = P × r(1+r)^n / ((1+r)^n – 1) for n months. That payment covers interest and principal so the balance reaches zero at term end if all payments are made.

Worked example

P = 15000, rate = 7%, n = 60. The amortizing repayment rounds to about 297.02.

InputValue
Loan amount15000
Annual rate7%
Term60 months
Monthly repaymentabout 297.02

How to use the fields

  • Loan amount is the principal financed.
  • Annual interest rate is the nominal yearly percent.
  • Term is the number of monthly payments.

Term tradeoffs

Longer terms lower the monthly repayment but raise total interest across the life of the loan. Shorter terms do the opposite. Compare two terms with the same principal and rate before you lock a contract.

Common mistakes

  • Entering years in a months field
  • Mixing APR styles without reading the lender definition
  • Forgetting that fees can change cash due at signing
  • Assuming every lender uses the same compounding convention

Budget fit

Set a maximum comfortable repayment, then adjust principal or term until the calculator lands under that cap. That reverse planning prevents shopping by sticker price alone.

Interest share over time

Flat payments hide a changing mix. Early months skew to interest, later months skew to principal. The calculator gives the payment amount; an amortization table would show the split if you build one separately.

Classroom practice

Have learners compute the zero rate payment 15000/60 = 250, then explain why 7% lifts the payment to about 297. The gap is the cost of spreading interest across five years.

Change only the rate to 5% and predict the payment falls, then confirm with the tool.

Total interest sketch

Multiply the monthly repayment by the number of months, then subtract principal for a rough interest total. Rounding on the final installment can shift the last bit of interest slightly.

Compare that interest total across two terms to see how much you pay for a lower monthly number.

Refinancing style checks

To mimic a refinance, enter the remaining principal, the new rate, and the new term in months. The calculator does not track closing costs, so subtract those mentally from any savings story.

Keep old and new scenarios in a small table so the payment change is obvious.

Currency and reporting

State the currency beside the repayment when you share results. The math does not care, but readers do.

Round displayed payments to cents for money talk, while keeping full precision if you rebuild an amortization grid later.

Prepayment clauses

Some loans allow free extra principal payments. Others charge fees. The calculator cannot read your contract, so check prepayment terms before you assume you can shorten the schedule freely.

If extras are allowed, a higher voluntary payment is still something you approximate by changing inputs, not by a dedicated extra field on this tool.

Keep the contractual minimum payment in mind even when you model a higher repayment for planning.

Side by side with payment defaults

The payment calculator on this site uses 20000 at 5% for 48 months. This repayment page uses 15000 at 7% for 60 months. Same amortizing idea, different teaching samples, so search pages do not collide on identical stories.

When you link both tools in study notes, quote the defaults so readers know why the monthly numbers differ.

Limitations

No balloons, no interest only windows, no variable rates. Fixed amortizing repayment only.

Frequently Asked Questions

What does the default example show?

15000 at 7% for 60 months gives about 297.02 monthly repayment.

How is this different from the payment calculator?

Both use amortizing payment math. Repayment defaults to 15000 / 7% / 60 months; payment uses 20000 / 5% / 48 months.

Is the term in months or years?

Months. Convert years by multiplying by 12 before you enter the term.

Does it include fees?

No. Origination fees and insurance are outside the payment formula.

What if the rate is zero?

The repayment is principal divided by months.

Is interest front loaded?

Yes in the schedule sense: early payments contain more interest even though the payment amount stays flat.

Can I model extra payments?

Not as a separate field. Raise the implied payment yourself or shorten the term to approximate.

Currency?

Use any currency consistently. The math is unitless aside from the money amount you enter.