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This loan calculator – also known as an amortization schedule calculator – lets you estimate your monthly loan repayments. It also determines out how much of your repayments will go towards the principal and how much will go towards interest. Simply input your loan amount, interest rate, loan term and repayment start date then click "Calculate".
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Loan Payoff Definition That payment is calculated so that you pay off the loan gradually over the loan’s term. At the end of the 5th year, your last payment will cover exactly what you owe. The process of paying down debt this way is called amortization.