Loan Repayment Calculators
Whenever you think about getting a loan, the two main issues that come to mind are: how to repay the loan and the total amount that must be paid. On this page you will find two free loan repayment calculators that will assist you with these two issues:
- Pay Off Period Calculator – This calculator allows you to establish the pay off period in case you opt for a fixed monthly or yearly installment. For instance, you can find out for how many months you will have to pay monthly instalments of $500 in order to pay off a $10,000 loan that comes with an annual interest rate of 5%.
- Installment Calculator – This calculator allows you to establish the value of monthly installments for a particular pay off period. For instance, you can find out how much it will cost you each month to repay an $8,000 loan with an annual interest rate of 5% over the duration of 10 years.
Taking the two aforementioned options into consideration, select the calculator you need, then introduce manually or use the slider to select the needed values. After you introduce all the figures, the calculations for repaying your loan will be executed right away. A payment table will be shown together with the total payment and total interest you have to pay off. Other options include choosing to create a monthly or annual payment overview.
Things to Keep in Mind about the Pay Off Period Calculator
Please be aware that the monthly or yearly installment you will introduce must be high enough for repaying the loan in its entirety. If you introduce very low values for your monthly or yearly installment, the value of the interest that must be paid for the respective period may be higher than the actual payment. In that case, you will not be able to pay off/repay the loan at all.
Repaying a loan means two things: paying back the amount that was lent to you, and paying the interest for the respective amount. It is counterproductive to choose a too low value for monthly or yearly installments, as you will never make it to repay the actual loan. For instance: if the payoff amount is $5,000, and the interest rate per year is 10%, the interest during the first year after getting the loan will amount to $500. So, if you decide to pay off $100 during the first year, you will not be able to pay back the loan. Basically, you will only pay a part of the interest for that year. The rule of thumb is to repay at least the yearly interest amount so you can start repaying the loan.
The immediate consequence is that the higher the interest rate is, the higher the minimal instalment amount should be in order to pay off the loan.
Use the Pay Off Period Calculator to simulate multiple scenarios, until you find one that fits your budget. Keep in mind that you must be able to accommodate an extra monthly expense, before contracting the loan.