Loan Payoff Calculator

How fast could you be debt-free? Enter your loan balance, interest rate and remaining term, add an extra monthly payment, and this loan payoff calculator shows the time saved, the interest saved and your new payoff date.

Example filled in: a $20,000 loan at 7.5% interest with 60 months left, plus $100 extra each month. 7.5% is an example rate, not a live market rate. Change any number below to run your own loan.

How to use this loan payoff calculator

Enter the balance you still owe, the interest rate and the months left.
Enter the extra amount you can pay each month.
The loan payoff calculator shows your new payoff time, the interest saved and the new payoff date.
Try a bigger extra payment to see how much more time and interest it saves.

Formula

Your normal monthly payment comes from the amortization formula M = P × r(1+r)ⁿ / ((1+r)ⁿ − 1). With an extra payment, each month you pay M plus the extra amount. Interest for the month is the balance times the monthly rate; the rest of the payment cuts the balance. The loan ends in the month the balance reaches zero. Interest saved is the interest on the original schedule minus the interest with the extra payments.

Worked example — $20,000 loan, $100 extra a month

A $20,000 loan at 7.5% interest (an example rate, not a live market rate) with 60 months left has a normal monthly payment of $400.76 and total interest of $4,045.54. Pay $100 extra each month — $500.76 in total — and the loan is paid off in 47 months instead of 60, which is 13 months sooner, with total interest of $3,080.99. That saves $964.55 in interest. Check it above — the loan payoff calculator gives the same answer, with the payoff date counted from today.

Frequently asked questions

How fast can I pay off a loan with extra payments?

It depends on the balance, the rate and how much extra you pay. On a $20,000 loan at 7.5% (an example rate) with 60 months left, $100 extra a month pays it off in 47 months instead of 60 — 13 months sooner — and saves $964.55 in interest. Put your own numbers into the loan payoff calculator above to see your payoff date.

Is it better to pay extra monthly or in one lump sum?

Both cut the interest, because interest is charged on the balance each month. A lump sum early in the loan saves the most, because it cuts the balance that every later month’s interest is charged on. Monthly extra payments are easier to keep up, and they add up to the same kind of saving over time.

Does paying extra always save interest?

Yes, as long as the extra payment goes to principal. Check with your lender that extra payments are applied to principal and not to future payments, and check whether your loan has a prepayment penalty. A few loans charge a fee for paying early.

Should I pay off my loan early or save the money?

Paying off a loan early gives you a guaranteed return equal to the loan’s interest rate — on the example above, 7.5%. Saving earns whatever your savings account pays, which is usually lower. But keep an emergency fund first: money paid into a loan is hard to get back in a hurry.

What if I can only pay $25 extra a month?

Even a small extra payment helps. Enter $25 above and compare: the payoff date moves sooner and the interest saved is still real money. Any extra payment cuts the balance, and a lower balance means less interest next month.

Sources and method. Standard loan amortization formula: monthly rate = annual rate / 12; monthly payment = P × r(1+r)ⁿ / ((1+r)ⁿ − 1). Simple interest I = P × r × t; compound interest A = P(1 + r/n)^nt. Rates in the examples on this page are examples only, not live market rates. Results are estimates, not financial advice.

Estimate, not financial advice. This calculator uses the numbers you enter and the standard amortization formula. Your lender’s figures, fees and payoff rules can differ. Check the loan agreement and talk to a financial professional before you borrow.