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Loan Repayment Calculator: How Long to Pay Off a Loan
Find out when your loan will be paid off and what overpaying is worth. Add a regular extra payment or one-off lump sums to see the months and interest you save, or enter what you can pay each month to see how long the debt will last.
- Months and interest saved by overpaying
- Regular and one-off overpayments together
- Payoff time from the payment you can afford
Loan repayment calculator
What do you want to find out?
The annual rate, not the APR.
60 monthly repayments
Overpayments
Money you pay on top of the agreed repayment. It goes straight to the balance.
Paid with every 12th repayment.
After a one-off or yearly overpayment, the lender should
Regular monthly overpayments always shorten the term.
Shows the calendar month you finish.
- Without overpayments
- With overpayments
Repayment scheduleShow
| Month | Repayment | Overpayment | Interest | Closing balance |
|---|---|---|---|---|
| 1 | £303.43 | £100.00 | £98.75 | £14,695.32 |
| 2 | £303.43 | £100.00 | £96.74 | £14,388.63 |
| 3 | £303.43 | £100.00 | £94.73 | £14,079.93 |
| 4 | £303.43 | £100.00 | £92.69 | £13,769.19 |
| 5 | £303.43 | £100.00 | £90.65 | £13,456.41 |
| 6 | £303.43 | £100.00 | £88.59 | £13,141.57 |
| 7 | £303.43 | £100.00 | £86.52 | £12,824.66 |
| 8 | £303.43 | £100.00 | £84.43 | £12,505.66 |
| 9 | £303.43 | £100.00 | £82.33 | £12,184.56 |
| 10 | £303.43 | £100.00 | £80.22 | £11,861.35 |
| 11 | £303.43 | £100.00 | £78.09 | £11,536.01 |
| 12 | £303.43 | £1,100.00 | £75.95 | £10,208.53 |
| 13 | £303.43 | £100.00 | £67.21 | £9,872.31 |
| 14 | £303.43 | £100.00 | £64.99 | £9,533.87 |
| 15 | £303.43 | £100.00 | £62.76 | £9,193.20 |
| 16 | £303.43 | £100.00 | £60.52 | £8,850.29 |
| 17 | £303.43 | £100.00 | £58.26 | £8,505.12 |
| 18 | £303.43 | £100.00 | £55.99 | £8,157.68 |
| 19 | £303.43 | £100.00 | £53.70 | £7,807.95 |
| 20 | £303.43 | £100.00 | £51.40 | £7,455.92 |
| 21 | £303.43 | £100.00 | £49.08 | £7,101.57 |
| 22 | £303.43 | £100.00 | £46.75 | £6,744.89 |
| 23 | £303.43 | £100.00 | £44.40 | £6,385.86 |
| 24 | £303.43 | £100.00 | £42.04 | £6,024.47 |
| 25 | £303.43 | £100.00 | £39.66 | £5,660.70 |
| 26 | £303.43 | £100.00 | £37.27 | £5,294.54 |
| 27 | £303.43 | £100.00 | £34.86 | £4,925.97 |
| 28 | £303.43 | £100.00 | £32.43 | £4,554.97 |
| 29 | £303.43 | £100.00 | £29.99 | £4,181.53 |
| 30 | £303.43 | £100.00 | £27.53 | £3,805.63 |
| 31 | £303.43 | £100.00 | £25.05 | £3,427.25 |
| 32 | £303.43 | £100.00 | £22.56 | £3,046.38 |
| 33 | £303.43 | £100.00 | £20.06 | £2,663.01 |
| 34 | £303.43 | £100.00 | £17.53 | £2,277.11 |
| 35 | £303.43 | £100.00 | £14.99 | £1,888.67 |
| 36 | £303.43 | £100.00 | £12.43 | £1,497.67 |
| 37 | £303.43 | £100.00 | £9.86 | £1,104.10 |
| 38 | £303.43 | £100.00 | £7.27 | £707.94 |
| 39 | £303.43 | £100.00 | £4.66 | £309.17 |
| 40 | £303.43 | £7.78 | £2.04 | £0.00 |
How to Use the Loan Repayment Calculator
The calculator has two modes. Pick the one that matches what you know.
The loan term. Enter the amount borrowed, the interest rate and the term. You get the monthly repayment and payoff date. Then add overpayments:
- Extra every month: a fixed amount on top of every repayment.
- One-off overpayments: lump sums such as a bonus or tax refund, each in the month you plan to pay it.
The result compares the loan with and without overpayments: time saved, interest saved and the new payoff date.
What I can pay. Enter the balance you owe now, the rate and the monthly amount you can afford. You get the number of payments, the total interest and the size of the final payment.
Loan Repayment Formulas
Monthly repayment = B × r × (1 + r)^n ÷ ((1 + r)^n − 1)
Number of payments = −ln(1 − r × B ÷ P) ÷ ln(1 + r), rounded up
| Symbol | Meaning |
|---|---|
| B | Balance (amount borrowed or still owed) |
| r | Monthly rate = annual rate ÷ 12 ÷ 100 |
| n | Number of monthly repayments |
| P | Monthly payment |
The second formula only works when P is larger than r × B, the first month's interest. Each month the calculator charges interest on the balance (rounded to the penny), takes the repayment and any overpayment off the balance, and stops when it reaches zero.
Worked Example: Overpaying a £15,000 Loan
A £15,000 loan at 7.9% a year over 5 years has a monthly repayment of £303.43 and costs £3,205.71 in interest over 60 payments.
| Scenario | Payments | Interest | Saved |
|---|---|---|---|
| No overpayments | 60 | £3,205.71 | |
| £100 extra a month | 43 | £2,260.76 | 17 months, £944.95 |
| £100 a month + £1,000 in month 12 | 40 | £2,044.98 | 20 months, £1,160.73 |
In the last scenario you overpay £4,907.78 in total and are debt-free 20 months early. The overpayments do not cost you anything extra: you pay £1,160.73 less overall.
Worked Example: Paying What You Can Afford
The same £15,000 at 7.9%, paid at a fixed amount each month:
| Monthly payment | Payments needed | Total interest |
|---|---|---|
| £300 | 61 | £3,252.93 |
| £400 | 44 | £2,283.59 |
Paying £400 instead of £300 clears the debt 17 months sooner and saves £969.34 of interest. A payment of £98.75 or less never clears it, because that is the first month's interest.
What Changes Your Payoff Date
| Factor | Effect |
|---|---|
| Overpayment size | Every extra pound shortens the loan |
| Timing | Earlier overpayments save more interest than later ones |
| Interest rate | The higher the rate, the more each overpayment saves |
| Remaining term | Overpaying early in a long loan saves the most, because most of the interest is still to come |
Before You Overpay
- Check the agreement. Fixed-rate loans and mortgages can carry an early repayment charge. In the UK, compensation on regulated consumer credit not secured on property is capped by law; mortgages follow the terms of your mortgage offer, which may allow some overpayment each year without a charge.
- Tell the lender what the money is for. Ask for overpayments to reduce the balance and shorten the term, not to pay future instalments in advance.
- Clear expensive debt first. Overpaying a 7.9% loan makes little sense while a credit card charges more.
- Keep an emergency fund. Money paid into a loan is hard to get back.
The calculator assumes a fixed interest rate and that the monthly repayment stays the same. Your lender's settlement figure is the binding amount.
Updated . How we check our tools and content.
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Loan Repayment Calculator FAQ
Overpaying, early settlement and payoff time, answered.
How do I work out how long it will take to pay off a loan?
Use n = −ln(1 − r × B ÷ P) ÷ ln(1 + r), where B is the balance, P is the monthly payment and r is the annual rate ÷ 12 ÷ 100, then round up to whole months. For £15,000 at 7.9% paying £400 a month, n is about 43.2, so it takes 44 payments, the last one £83.59. Choose 'What I can pay' in the calculator to skip the maths.
Is it worth overpaying a loan?
Every pound you overpay stops earning interest for the lender at your loan's rate, so the return is the interest rate you avoid, with no risk. On the example £15,000 loan at 7.9%, £100 a month extra saves £944.95 of interest and 17 months. Before overpaying, check you have an emergency fund and no more expensive debt, such as a credit card, that should be cleared first.
Should I overpay monthly or in one lump sum?
The earlier money reaches the balance, the more interest it saves, so a lump sum paid now beats the same amount spread over the next year. Regular overpayments are easier to sustain. You can combine both in the calculator: the example adds £1,000 in month 12 on top of £100 a month and saves 20 months and £1,160.73.
Will my lender charge me for paying off a loan early?
For UK personal loans and other regulated credit not secured on property, the Consumer Credit Act lets the lender claim compensation for early repayment only on a fixed-rate agreement, only once you repay more than £8,000 early, and capped at 1% of the amount repaid early (0.5% if a year or less is left), never more than the interest you would have paid. Mortgages follow the early repayment charges in your mortgage offer instead.
Does an overpayment reduce my monthly payment or the term?
This calculator assumes the monthly repayment stays the same, so overpayments shorten the term, which saves the most interest. Some lenders reduce the monthly payment instead and keep the end date; ask yours which it does and request a shorter term if you want the bigger saving.
Why does my payment have to be more than the interest?
Each month the lender adds interest on the balance. If your payment does not cover it, the balance never falls. For £15,000 at 7.9% the first month's interest is £98.75, so any payment at or below that never repays the loan, and the calculator tells you so.
Why is my last payment smaller?
Your final payment only needs to clear what is left. When you pay £400 a month on the example loan, 43 full payments leave £83.04 plus £0.55 of interest, so the 44th payment is £83.59.