Understanding estimates

Calculation Methodology

Last updated: August 16, 2026

RepayLab presents mathematical estimates based on the values and repayment method selected by the user. Results are intended to help users understand possible repayment scenarios.

Payment estimates

For a standard reducing-balance loan, each payment is divided between interest on the outstanding balance and repayment of principal. Other supported methods may produce different payment patterns. RepayLab identifies the selected method with the result.

Costs and dates

Total repayment may include principal, estimated interest and fees entered by the user. Dates, payment frequencies, early repayments and rate changes can affect an estimate. Rounding may cause small differences between displayed totals and individual schedule rows.

Comparisons and plans

Scenario and repayment-plan comparisons use the information entered by the user. They do not compare lenders, determine eligibility, predict approval or guarantee savings. A lower estimated cost or earlier payoff in one scenario is not a recommendation to take a financial product.

Why actual figures may differ

A lender may use different day-count rules, compounding, payment dates, taxes, fees, penalties, rate resets or rounding. Confirm the lender's official disclosure and agreement before making a financial decision.

Important notice

RepayLab is a planning tool, not a lender, broker or financial adviser. Results are informational estimates and are not an offer, approval, guarantee or financial, legal, tax or investment advice. Read the Financial Disclaimer for more information.