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How Long Will It Take to Reimburse Your Loan and its Interest?

How Long Will It Take to Reimburse Your Loan and its Interest? Whether it is the balance on your credit card or your mortgage, if you know the balance on one of your loan, the monthly payment and the interest rate, you could find out how long it will take to reimburse it completely. This calculator will do the job for you; you just have to enter the required data to obtain the number of monthly payments needed to clear off your loan balance, as well as the total number of years needed to reimburse it.

The calculator will also give you the future interest to pay, i.e. the total sum of interest included in all your future monthly payments. This information is very useful, because this make you realize how much money you could save by paying the loan earlier.

Future loan interest vs. Prepayment penalty

Some agreement may penalize an anticipated payment, in these cases, you could compare the amount of the prepayment penalty with the future loan interest included in the regular payments, in order to evaluate what is most profitable.

Total reimbursement of the balance is not always the best option, especially towards the end of the term, because the interest left to be paid could actually be smaller than the penalty itself, so paying the loan earlier would turn out to be more expensive than continuing the regular payments. This calculator is an important tool for these kind of decisions on your loan.

Please change the suggested values with your own in the blue text boxes.

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This chart #1 shows the evolution throughout the whole term of the amount in capital and interest included in the monthly payment.

Evolution of Capital and Interest Included in the Monthly Payment

 

This chart #2 for its part indicates the evolution throughout the term of the cumulative payments made in capital and in interest, as well as the balance left to pay on the loan.

Evolution of Cumulative Payment Made in Capital and Interest

We notice that the borrower pays the majority of the interests at the beginning of the term and the balance only goes down with the capital that has been paid. That is why the balance is slow to drop at the beginning of the loan.

Complete Analysis

For a complete view, here are all the numbers for every months of the loan:

Mobile users: you can scroll the table horizontally
Month Open balance Interest Capital Closed balance Cumulative
interest
Cumulative
capital
 
 
 
Numbers in our calculators are rounded to two decimals.
The same calculations made in an Excel spreadsheet may differ slightly.

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