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Calculate repayments, total interest, and full amortisation for any personal or car loan.
| Term | Monthly | Total Interest | Total Cost |
|---|---|---|---|
| 1 year | $0.00 | $0 | $0 |
| 2 years | $0.00 | $0 | $0 |
| 3 years | $0.00 | $0 | $0 |
| 4 years | $0.00 | $0 | $0 |
| 5 years | $0.00 | $0 | $0 |
| 7 years | $0.00 | $0 | $0 |
| 10 years | $0.00 | $0 | $0 |
Loan repayments use a standard amortisation formula. Each repayment covers the interest accrued since your last payment, with the remainder reducing your principal. Early repayments are mostly interest; later repayments are mostly principal.
The formula is: P = L × r / (1 − (1+r)^-n), where L is the loan amount, r is the periodic interest rate, and n is the total number of repayments.
Making extra repayments early in the loan has a disproportionately large impact — because it reduces the principal balance that interest is calculated on, saving you compound interest over the remaining term.