Free loan early payoff calculator
Find out how much you save by paying extra on a loan — enter balance, rate, current payment, and extra amount to see months and interest saved, updated live, as you type.
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No prepayment penalty assumed. Contact your lender to confirm extra payments apply to principal.
Results are estimates. Consult a professional.
How the loan early payoff calculator works
Every time you make a loan payment, part covers that month's interest and the rest chips away at principal. When you add extra principal payments, you shrink the balance faster — which reduces future interest charges and cuts months off the loan. The calculator runs two amortization schedules side by side: the original term and a new schedule with your extra payment, then reports the difference.
Worked example: $18,000 auto loan with $150 extra per month
Dana finances an $18,000 used car at 7% APR over 60 months. The standard payment is $356/mo and total interest over the life of the loan is $3,337. Dana decides to add $150 extra to each payment to pay off the loan sooner.
Months and interest saved by extra payment amount
The table below shows how much time and interest you save on a $15,000, $20,000, or $30,000 auto loan at 7% APR over a standard 60-month term, depending on how much extra principal you add each month.
| Extra/mo | $15k — months saved | $15k — interest saved | $20k — months saved | $20k — interest saved | $30k — months saved | $30k — interest saved |
|---|---|---|---|---|---|---|
| $50 | 7 | $446 | 7 | $595 | 7 | $891 |
| $100 | 12 | $796 | 12 | $1,061 | 12 | $1,590 |
| $200 | 20 | $1,258 | 21 | $1,680 | 21 | $2,518 |
| $300 | 26 | $1,554 | 27 | $2,076 | 28 | $3,114 |
Source: CFPB auto loan guide. Estimates assume fixed 7% APR, 60-month term, and consistent extra payments each month.
Tips for paying off your loan early
Even modest extra payments make a real difference over a multi-year loan. Here are five strategies to put the math into practice.
- Label extra payments as principal. When you pay extra, tell your lender to apply it to principal — not next month's payment. Some servicers advance the due date instead, which delays interest savings.
- Round up your payment. If your payment is $356, pay $400 or $450. The small rounding adds up to months of savings with zero budgeting complexity.
- Make bi-weekly payments. Splitting the monthly payment and paying every two weeks produces 26 half-payments (13 full payments) per year instead of 12 — one extra full payment annually.
- Apply windfalls to principal. Tax refunds, bonuses, and raises are ideal for lump-sum principal curtailments that immediately reduce your remaining months.
- Check for prepayment penalties. Most auto and personal loans have none, but some older or subprime contracts charge a fee for early payoff. Review your loan agreement before paying extra.
Accuracy and limitations
This calculator assumes a fixed interest rate, a constant extra payment each month, and that all extra amounts are applied immediately to principal. Actual savings may differ if your lender applies prepayments differently, if the loan carries a variable rate, or if you make irregular extra payments rather than a consistent monthly amount.
Not financial advice — consult a financial professional for your situation.
Loan early payoff terms defined
About this loan early payoff calculator
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