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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 left to be paid on your loan, its monthly payment and the interest rate, you can find out how long it will take you to reimburse it completely.

The following calculator will do the job for you; you just have to enter the required data in order to obtain the number of monthly payments needed to clear off the loan balance, as well as the total number of years needed to reimburse it.

The calculator will also give you the future interest left for you to pay, i.e. the total sum of interest included in all your future monthly payments. This information is very useful, giving you insight into how much money you could save if you pay off the loan earlier.

Future loan interest vs. Prepayment penalty

Some agreements 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.

The 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 amounts 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 shows the evolution, throughout the whole term, of the cumulative payments made in capital and in interest, as well as the balance left to be paid on the loan.

Evolution of Cumulative Payments in Capital and Interest

We notice that the borrower pays the majority of the interest at the beginning of the term, and the balance only goes down when the capital is paid. That is why the balance of a loan always goes down slowly at the beginning.

Complete Analysis

For a complete view, here are all the numbers for every month 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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