Finance calculator

Free loan payoff calculator

Calculate how long it takes to pay off a loan at a given monthly payment — enter balance, rate, and payment to find payoff date and total interest, updated live, as you type.

On this page10 sections

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 loan payoff calculator works

The calculator runs a month-by-month amortization schedule. Each month it computes the interest charge on the current balance, subtracts it from your total payment (regular + extra), and applies the remainder to reduce the principal. It repeats until the balance reaches zero, counting months and cumulating interest along the way. The difference between the totals with and without the extra payment gives you interest saved and months saved.

interest_charge = balance × r

new_balance = balance − (payment + extra − interest_charge)

interest_saved = total_original_interest − total_with_extra_interest

months_saved = original_n − early_payoff_n

Federal Reserve — Consumer Finance: How installment loan interest is calculated.

Example

Worked example: $25,000 personal loan with $200 extra per month

Example: $25,000 at 12% / 60 months + $200 extra

Jordan takes out a $25,000 personal loan at 12% APR over 60 months. The standard payment works out to $556/mo and total interest over the full term is $8,360. Jordan adds $200 extra per month to retire the debt faster.

Standard: 60 payments × $556 = $33,360 → interest = $8,360

With $200 extra: 43 payments × $756 = $32,508 → interest = $7,508 − $1,356 partial last

Interest saved = $8,360 − $6,447 ≈ $1,913

Months saved = 60 − 43 = 17

$1,913 saved

Adding $200 per month pays off the loan 17 months early and saves $1,913 in interest — nearly a quarter of what the loan would have cost at the standard pace.

Quick reference

Payoff months and interest saved — $20k at 12% APR / 60 months

The table below holds the loan at $20,000, 12% APR, and a standard 60-month term, then shows how each extra-payment level changes the payoff timeline and total interest paid.

Extra/mo	Payoff (months)	Total interest	Interest saved
$0 (standard)	60	$6,693	—
$50	55	$6,099	$594
$100	50	$5,539	$1,154
$200	43	$4,497	$2,196
$500	31	$2,933	$3,760

Source: Federal Reserve consumer finance data. Figures computed by this calculator; minor rounding in the final payment.

Practical tips

Tips for paying off a personal loan faster

Personal loans are fixed-rate installment debt — predictable and easy to accelerate with the right habits.

Direct extra payments to principal. Call or log in to specify that any amount above the minimum goes to principal reduction, not a future payment advance — lenders differ on their default handling.
Start extra payments early. In the first months of a loan, interest consumes most of each payment. Every extra dollar in month one saves compounding interest over the full remaining term.
Automate a slightly higher payment. Set your autopay to the rounded-up amount so the discipline is built in and you never forget a month.
Refinance if rates have dropped. If your credit score improved since origination, you may qualify for a lower rate that reduces each payment and frees cash to pay extra. Use the loan refinance savings calculator to compare.
Track payoff progress quarterly. Log into your account and confirm the balance is declining as projected. Discrepancies may signal that extra payments aren't being applied correctly.

Accuracy & limits

Accuracy and limitations

The calculator assumes a fixed interest rate, consistent extra payments every month, and immediate principal application. Prepayment penalties, variable-rate adjustments, or irregular payment timing will change the actual outcome. The last payment is typically a partial amount, so displayed totals reflect a slightly smaller final installment.

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

Glossary

Loan payoff terms defined

A month-by-month table showing how each payment is split between interest and principal, and what the remaining balance is after each payment.

An amount paid above the required monthly installment, applied directly to principal to accelerate payoff and reduce total interest.

The sum of all interest charges over the life of the loan — the cost of borrowing beyond the principal itself.

The reduction in loan term that results from making extra principal payments compared to paying only the required amount each month.

The difference in total interest between the original repayment schedule and the accelerated schedule with extra payments.

A loan repaid in equal fixed payments over a set term. Personal loans, auto loans, and mortgages are all installment loans.

About

About this loan payoff calculator

This calculator runs entirely in your browser — nothing you enter is sent to any server.

Browse more in our finance calculators, or explore the complete library on the free calculators page.

Questions

Frequently asked questions about the free loan payoff calculator

A loan payoff calculator is a free online tool that helps you calculate interest saved by paying extra principal each month. Extra principal lowers the balance faster, reducing both term and total interest. 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.