Finance calculator

Free line of credit payoff calculator

See how long it takes to pay off a line of credit with fixed payments — enter balance, rate, and monthly payment to find payoff date and total interest, updated live, as you type.

InputsLive
Loan amount
$
Annual interest rate
%
Loan term
yrs
Extra monthly payment
$/mo
Result
Interest saved
$1,327.32
22 months sooner · Payoff in 3y 2mo
Interest saved$1,327.32
Months saved22
New payoff time3y 2mo
Regular payment$391.32

No prepayment penalty assumed. Contact your lender to confirm extra payments apply to principal.

Results are estimates. Consult a professional.

How it's calculated

How the line of credit payoff calculator works

A line of credit (LOC) in payoff mode behaves mathematically like a credit card or any amortizing revolving debt. Once you stop drawing on the line and set a fixed monthly payment, the balance declines each month as your payment covers that month's interest and the remainder reduces principal. The calculator finds how many months until the balance reaches zero and the total interest you'll pay along the way.

monthly_rate = APR ÷ 12
interest_charge = balance × monthly_rate
New balance = balance (payment interest_charge)
Repeat each month until balance ≤ 0
Total interest = sum of all monthly interest charges
CFPB: Credit card and line of credit payoff tools
Example

Worked example: $25k line of credit at 10%, $600/mo fixed payment

Example: $25,000 LOC at 10% APR, $600/month fixed payment

A homeowner used their $25,000 home equity line of credit for renovations and is now in the repayment phase. They commit to a fixed $600/month payment and want to know when they'll be debt-free and how much interest they'll pay.

monthly_rate = 0.10 ÷ 12 = 0.008333
Month 1 interest = $25,000 × 0.008333 = $208
Month 1 principal paid = $600 $208 = $392
Balance after month 1 = $25,000 $392 = $24,608
Months to payoff = 50 months | Total interest = $4,755
$4,755
Total interest paid over 50 months at $600/month. Adding just $100 more per month ($700) cuts payoff to 43 months and saves roughly $590 in interest.
Quick reference

Months to payoff and total interest by balance, rate, and payment

Each cell shows months to payoff / total interest. Find your approximate balance in the rows, your rate in the column groups, and the closest fixed payment to plan your payoff timeline.

Balance8% / $30010% / $50012% / $750
$10,00039 mo / $1,62222 mo / $93114 mo / $526
$20,00050 mo / $4,75532 mo / $3,924
$30,00055 mo / $11,194
$50,000

Source: CFPB payoff tools; '—' indicates payment is below minimum needed to reduce balance at that rate

Practical tips

Tips for paying off a line of credit

Lines of credit are flexible, but that flexibility can trap borrowers in a cycle of draws and minimum payments that barely touch the principal. Treating the LOC like a fixed-term loan is the fastest path out.

  • Freeze the line during payoff — request a temporary credit limit reduction or simply resolve not to draw again; continuing to draw while paying resets progress and can trap you permanently.
  • Pay significantly above the minimum — LOC minimums are often just the interest charge, meaning you could carry the balance forever paying minimums; set a fixed payment well above that.
  • Refinance to a fixed personal loan — converting the LOC balance to a personal loan with a defined end date removes the temptation to draw and locks in a structured payoff schedule.
  • Apply lump sums directly to the balance — because interest accrues on the daily balance with many LOCs, lump-sum payments immediately reduce the interest charged the next cycle.
  • Watch for rate adjustments — home equity lines and business credit lines are often variable-rate; a rate increase raises your interest charge each month, extending payoff time unless you raise your payment accordingly.
Accuracy & limits

Accuracy and limitations

This calculator assumes a fixed APR, a fixed monthly payment, and no additional draws on the line during the payoff period. Most home equity lines of credit and many business LOCs use a variable rate tied to Prime, so actual interest charges may differ if rates change. Some lenders calculate interest daily rather than monthly; this calculator uses end-of-month balance, which may slightly underestimate total interest on daily-accrual products.

Not financial advice — consult a financial professional for your specific situation.

Glossary

Line of credit terms defined

A flexible borrowing arrangement that lets you draw funds up to a set limit, repay them, and draw again — similar to a credit card but often with a lower rate and a defined draw period.
The phase during which you can access funds from the LOC. For HELOCs this is typically 5–10 years; for business lines it may renew annually.
The phase after the draw period closes. New draws are blocked and you repay the outstanding balance, often over 10–20 years for HELOCs.
An interest rate that moves with a benchmark such as the Prime Rate. Most HELOCs and business lines are variable; rate increases raise your monthly interest charge.
A minimum payment that covers only the month's interest charge with nothing applied to principal. Paying interest-only keeps the balance flat indefinitely.
A LOC secured by your home's equity. HELOCs typically have lower rates than unsecured lines but put your home at risk if you default.
About

About this line of credit payoff calculator

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Questions

Frequently asked questions about the free line of credit payoff calculator

A line of credit payoff calculator is a free online tool that helps you time and interest to pay off a line-of-credit balance at a fixed monthly payment. Same amortization math as credit card payoff. It runs entirely in your browser with instant results and no sign-up.
No — actual loan terms depend on credit, income docs, and lender underwriting. Use this for planning and what-if scenarios; get a real Loan Estimate before making decisions.
When the calculator asks for them. PITI calculations include property tax, insurance, and PMI; raw P&I calculations don't.
Lenders round payment amounts and may include escrow buffers. Property tax and insurance change over time. Real payments vary 1-5% from these estimates.

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