Repayment Calculator
- Updated
- Formula shown
- Free, no sign-up
Results
$250.00 a month repays $6,000 in 30 months with $1,279 of interest
| Monthly payment | Months to repay | Total interest | Interest saved |
|---|---|---|---|
| $250.00 (yours) | 30 | $1,279 | – |
| $275.00 (+10%) | 26 | $1,138 | $142 |
| $312.50 (+25%) | 23 | $977 | $302 |
| $375.00 (+50%) | 19 | $794 | $486 |
| $500.00 (+100%) | 14 | $582 | $697 |
How to use the repayment calculator
- Enter the balance you owe today and its interest rate (APR).
- Choose What I can pay a month and enter the amount, or choose When I want it repaid and enter the number of months.
- Use the table to compare: bigger payments in the first mode, shorter or longer deadlines in the second.
The calculator assumes you stop adding to the balance. New spending on the same account will push the repayment date back.
Repayment formulas
Payment for a deadline: M = B × r ÷ (1 − (1 + r)−n)
Monthly interest: r × B, with r = APR ÷ 12
B is the balance, M the monthly payment, r the monthly interest rate as a decimal and n the number of months. Both formulas describe the same amortizing repayment; one solves for time, the other for the payment. When n is not a whole number, the last payment is smaller. A payment no bigger than r × B never reduces the balance, so the first formula has no answer, and the calculator warns you instead.
Worked example: $6,000 at 16%
The balance is charged about $80.00 of interest a month (6,000 × 0.16 ÷ 12), so any payment must beat that. Paying $250 a month clears it in 30 months (2 years 6 months), with a final payment of $29.44 and $1,279 of interest. Paying half as much again, $375, finishes in 19 months and costs $794.
Working the other way, to be debt-free in 24 months you need $293.78 a month. At just $100 a month the same balance would take 10 years 2 months and cost $6,151 in interest, more than the original balance.
Monthly payment to repay $5,000
| APR | In 12 months | In 24 months | In 36 months | In 60 months |
|---|---|---|---|---|
| 8% | $434.94 | $226.14 | $156.68 | $101.38 |
| 12% | $444.24 | $235.37 | $166.07 | $111.22 |
| 16% | $453.65 | $244.82 | $175.79 | $121.59 |
| 20% | $463.17 | $254.48 | $185.82 | $132.47 |
| 24% | $472.80 | $264.36 | $196.16 | $143.84 |
| 28% | $482.53 | $274.44 | $206.82 | $155.68 |
Scale the figures for your balance: $10,000 needs twice the payment shown, $2,500 half.
Which mode should you use?
Start with the budget mode if money is tight: it tells you honestly where an affordable payment leads, including when it barely dents the interest. Use the deadline mode when you have a goal, such as clearing a balance before a 0% promotional rate ends, before a wedding or before applying for a mortgage. If the payment it gives is out of reach, push the deadline out a few months and see how the payment and interest change in the table. Between the two you can usually find a payment that fits your budget and a date you can live with.
Making the plan work
- Automate the payment for just after payday so it happens before other spending.
- Several balances? Put the extra money on one at a time. The credit cards payoff calculator compares paying the highest rate first with paying the smallest balance first.
- Look for a lower rate. A cheaper loan or a balance transfer can shorten repayment without raising the payment. Check the fees with the debt consolidation calculator.
- Credit cards with minimum payments work differently because the minimum falls as the balance falls; use the credit card calculator for those.
Frequently asked questions
How long will it take to repay $6,000 at $250 a month?
At 16% APR, 30 months (2 years 6 months). The last payment is $29.44 and the interest totals about $1,279. Raising the payment to $375 cuts it to 19 months and $794 of interest.
What monthly payment do I need to be debt-free in two years?
For $6,000 at 16%, $293.78 a month for 24 months, with $1,051 of interest. Over 12 months it would be $544.39 a month and $533 of interest.
What is the smallest payment that will ever repay a balance?
It must be more than one month’s interest: balance × APR ÷ 12. On $6,000 at 16% that is $80. Just above it, repayment takes decades: $85 a month would take 17 years 10 months and cost about $12,182 in interest.
Does paying a little more each month really help?
Yes. On $6,000 at 16%, adding 10% to a $250 payment saves 4 months and about $142 of interest; doubling it to $500 clears the balance in 14 months and saves about $697.
Does this work for credit cards?
Yes, if you pay a fixed amount and stop using the card. If you pay only the minimum, the payment shrinks as the balance falls and repayment takes much longer; the credit card calculator models minimum payments.