ClauseryLoan repayment calculator
Lending to family, a friend or a business? Enter the amount, the interest rate and the number of payments to see the payment, the total interest, and a full schedule you can attach to the loan agreement.
Repayment schedule
| # | Date | Payment | Interest | Principal | Balance |
|---|
Interest is charged each period at the yearly rate divided by the number of payments a year. Enter 0% for an interest-free loan. A calculation aid, not financial or tax advice.
Put the loan in writing
Write the payment, the number of payments and the first and last payment dates into a signed agreement. The free loan agreement template covers interest, instalments, a late fee, collateral and a guarantor; for a simple loan, a promissory note is enough. If you charge interest, check the legal maximum where the borrower lives, and for large family loans check the tax rules on interest-free lending.
Add this calculator to your website
Free for blogs, accountants, law firms, trade associations and anyone who helps small businesses. Paste the code where you want the calculator to appear. It runs in your visitors' browsers, with no cookies, no tracking, and nothing they type sent anywhere.
The last line of the code resizes the calculator to fit; if your site strips scripts, leave it out and the calculator still works at a fixed height. On a dark website, add ?theme=dark after loan-repayment.html. Please keep the credit line under the calculator.
Questions
How is a loan repayment calculated?
For a loan repaid in equal instalments, the payment is P × i ÷ (1 − (1 + i)^−n), where P is the amount borrowed, i is the interest rate for one payment period (the yearly rate divided by the number of payments a year) and n is the number of payments. Each payment covers that period's interest first, and the rest reduces the balance.
What is an amortization schedule?
A table of every payment showing how much goes to interest, how much repays the loan, and the balance left afterwards. Early payments are mostly interest; later ones are mostly repayment.
Why is the last payment slightly different?
Payments are rounded to the cent, so the final payment is adjusted by a few cents to clear the balance exactly.
Does this match my bank's figures?
Usually to within a few cents or dollars. Some lenders charge interest daily, add fees, or round differently, so their figures can differ slightly.
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