# Loan Repayment Calculators

Loan repayment is the process of paying back funds that have been borrowed, including interest charges. This is done in the form of a monthly payment. The most common types of loans include mortgages and student debt.

Late or incomplete loan repayments can affect an individual’s credit health. Moreover, it can lead to additional fees and penalties.

Our mortgage calculator takes several factors into account to help you determine how much you can afford as a homeowner. You can input your desired home price, interest rate and down payment to see how these changes will affect your monthly loan payments and total cost of financing. It also helps you understand how much additional principal and interest you can save by making a one-time or recurring extra payment toward your loan balance. This calculator includes the option to include PMI (private mortgage insurance), if applicable, in your calculation.

Whether you’re a math whiz or slept through Algebra I, understanding how loan payments work can help you reach your financial goals without any surprises or penny-scrounging moments. WalletHub’s free loan payment calculator will help you find out how much a potential payment could be.

The calculation is based on your total loan amount, loan term and interest rate. It also considers any fees like an origination fee or prepayment penalty, which can increase the cost of borrowing.

Each month, part of your loan payment goes toward interest and part toward principal, based on an amortization schedule. Your monthly payment will change over time, as you pay off more of your loan balance.

To calculate your monthly payment, use the following formula: Monthly payment = principal x interest rate / loan term / number of payments per year. Remember that your monthly payment may vary slightly if you change your loan amount, interest rate or number of payments.

Interest is what lenders charge for the privilege of lending you money. They set their interest rates based on factors such as the loan amount, your credit score and your debt-to-income ratio. Choosing to borrow less money or opting for a shorter loan term will reduce your interest costs since you’ll pay off the loan sooner.

Many loans are amortized, meaning that part of each monthly payment is applied to interest and the remainder is applied to principal according to an amortization schedule. You can use a loan calculator to determine your interest rate for an amortized loan or for a simple-interest loan.

Keep in mind that the interest rate a lender quotes you will be different than the actual annual percentage rate (APR) because it will include fees like an origination fee. Using a loan calculator to figure your interest rate can help you understand the process your lender uses and make sure you’re not overpaying.