How long does the remaining repayment take?

📖 The story

After the fixed-rate period Mr. Poole has a remaining debt of $240,000. He refinances it at 5 % and can manage an installment of $1,600 per month.

ℹ Constant monthly installment until full repayment.

Change any number and press "Calculate" – or use "Type in" on the right to watch it entered.

What you learn

The installment determines the remaining term massively: just $100 more per month shortens the repayment by years and saves a lot of interest – a quick look at the duration pays off.

In short: The installment largely determines the remaining term – just $100 more per month shortens it noticeably.

Formula

n = ln(R/(R − D·i)) / ln(1+i), i = i_nom/m

With the example numbers

n = ln(R/(R − D·i)) / ln(1+i), i = 0,0500/12 ⇒ 19,66 Jahre

How to read the formula

Here too the term sits in the exponent and is solved via the logarithm. The key point: the more the installment exceeds the pure interest load (D·i), the faster the debt melts away – small installment increases shorten the duration disproportionately.

Embed on your own website

iframe code to copy›

<iframe src="https://fintechcalc.mindcruce.com/example.php?e=tilgungsdauer-anschluss&embed=1" width="100%" height="720" style="border:1px solid #ddd;border-radius:12px" loading="lazy"></iframe>