Loan Payoff Calculator
Enter your balance, rate and payment to see the payoff date. Add an extra monthly amount to compare the time and interest saved against the original schedule.
Enter your figures below. Results update as you type.
Paid off in3 yr 6 mo
- Balance 87%
- Interest 13%
- Total interest
- $2,651.65
- Without the extra payment
- 4 yr 6 mo
- Time saved
- 1 yr 0 mo
- Interest saved
- $820.39
- With extra payment
- Without
How the Loan Payoff calculation works
New balance = balance x (1 + APR / 12) - payment, repeated until the balance reaches zero
Every extra dollar goes straight to principal, so it stops accruing interest for the rest of the loan. On $18,000 at 8%, raising a $400 payment to $500 clears the debt about a year sooner.
Frequently asked questions
Is it better to pay extra monthly or in one lump sum?
Earlier is better. A lump sum today saves more interest than the same total spread over future months, because it reduces the balance sooner.
Why does the calculator say my payment is too low?
If the payment does not cover the monthly interest, the balance grows instead of shrinking and the loan is never repaid.
How do I calculate my loan payoff amount?
It is your current principal balance plus the interest that has built up since your last payment, plus any fees. Daily interest is the balance times the yearly rate divided by 365. Ask your lender for a payoff quote with a good-through date to get the exact figure.
How do extra payments shorten a loan?
Anything you pay above the required amount comes straight off the principal. A smaller balance means less interest next month, so more of every later payment goes to principal too. Enter an extra amount above to see the months and interest saved.
How do I find my loan payoff date?
Enter your balance, rate and monthly payment. The calculator works through the loan month by month until the balance reaches zero and reports how long that takes.
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