Loan Repayment Calculator

You make regular payments, usually monthly, until you've paid off the balance. Each payment covers the interest for that month, and the rest reduces the principal. With a fixed-rate loan, the payment stays the same, while the split changes over time. Your lender will send statements showing the balance, and your payment history gets reported to credit bureaus.

It's a table that lists every payment, how much of it goes to interest and principal, and what you still owe afterward. It shows how the balance falls over time, and you can use it to plan extra payments. Open the schedule above, or download it as a CSV or Excel file. Our loan amortization calculator explains how to read one.

It's the length of time you have to pay back a loan, often called its term. Some loans have a grace period or a draw period before repayment begins. Federal student loans often give you a few months after leaving school, and HELOCs allow borrowing before repayment starts. The period affects your monthly payment and how much interest you'll pay in total.

Pay more than the minimum, as early as you can, and tell the lender to apply it to principal. Round up your payment, make one extra payment a year or put windfalls toward the balance. Refinancing at a lower rate can help if you keep your payment the same, as more of it then goes to principal. Check for prepayment penalties first.

Compare your loan's rate with what your money could earn safely elsewhere. Paying off a 7% loan is like earning a guaranteed 7%, which is hard to beat. A 3% loan might be less urgent if you could earn more in insured savings. Make sure you've got an emergency fund first, and that you're getting any employer retirement match before paying extra.

Some loans do have one, though many consumer loans don't. It's usually a percentage of the balance or a few months of interest, and it may apply only in the first few years. Check your loan agreement for a prepayment clause, or ask your lender directly. Even with a penalty, paying early can still come out ahead, if the interest savings are larger.

Repaying principal isn't taxable income, and you generally can't deduct it. Interest may be deductible in some cases, such as mortgage interest if you itemize, student loan interest within limits, and business loan interest. Personal loan and credit card interest generally isn't deductible. If a lender forgives a debt, that amount can sometimes count as taxable income. Check with a tax professional.

Repayment is simply paying down your current loan. Refinancing replaces it with a new loan, usually to get a lower rate or a different term. A lower payment doesn't always mean a lower cost, because a longer term can raise your total interest. Compare the total you'd pay under each option, including fees, using the calculator above.

Forgiveness cancels some or all of a debt, usually under a specific program. Federal student loan programs for public service are the best-known example, and they have strict requirements. Private loans rarely offer it. Be wary of companies charging fees to get your loans forgiven, since many are scams. Check official sources such as studentaid.gov for what you might qualify for.

These programs help certain workers repay student loans, typically in exchange for working in a particular job or location. Examples include programs for military service, nurses, teachers and doctors in underserved areas. Employers can also offer repayment benefits. Rules and amounts vary, so check with the sponsoring agency or your employer. Some of these benefits may be taxable.

Contact your lender as soon as possible, ideally before you miss a payment. Many offer hardship plans, deferment or modified terms. Missing payments can bring late fees and damage your credit, and it can eventually lead to default. Secured loans could result in repossession or foreclosure. Nonprofit credit counselors can help you review your options, often for little or no cost.

It's a US rule from the Dodd-Frank Act that requires mortgage lenders to make a reasonable, good-faith determination that a borrower can repay. They must consider income, assets, debts and other factors. It was a response to the risky lending that fed the 2008 financial crisis. It mainly applies to home loans, though some other types of credit have similar protections.