Loan Term Calculator
Calculate your loan repayment term and monthly payments. Determine the optimal loan period based on your loan amount, interest rate, and monthly budget to minimize interest costs.
Step 1: Loan Details
Understanding Loan Terms
Longer loan terms reduce monthly payments but increase total interest paid. Shorter terms save interest but require higher monthly payments. Choose a balance that fits your budget.
Step 2: Payment & Term Options
About Loan Amortization
Loan payments consist of principal and interest. Early payments are mostly interest; later payments are mostly principal. Extra payments reduce principal faster and shorten loan term.
Loan Term Results
Estimated Loan Term
Loan Type Comparison
| Loan Type | Typical Term | Interest Rate | Best For |
|---|
Payment Breakdown
Loan Term Calculation Formula
Term = log(Monthly Payment / (Monthly Payment – Monthly Interest × Loan Amount)) / log(1 + Monthly Interest)
Where Monthly Interest = Annual Interest Rate ÷ 12 ÷ 100. Extra payments reduce the loan principal faster, shortening the overall term.
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