Loan Payoff Calculator
See your payoff date, total interest, and exactly how much an extra payment saves you, with a full amortization schedule you can download.
Free. We'll add it to your Debts tab with your extra payment, so the payoff date updates as you pay it down.
How to use this loan payoff calculator
Enter your loan balance and interest rate, then either type your monthly payment or switch to "I want a payoff date" to get the payment you'd need. Add an extra monthly amount and the calculator instantly shows the months and interest it saves, charts your balance dropping over time, and builds a full schedule you can download.
How is loan payoff calculated?
Each month, interest is charged on your remaining balance (your APR divided by 12). Your payment covers that interest first, and whatever is left knocks down the principal. Because the balance shrinks, next month's interest is a little smaller, so more of your payment goes to principal, and so on. That compounding-in-reverse is why the early months are mostly interest and the last months are almost all principal, and why paying extra early has an outsized effect.
How much does an extra payment save?
Every extra dollar skips the interest line entirely and goes straight to principal, erasing interest that dollar would have cost for the rest of the loan. On a $15,000 loan at 8% APR paid at $300/month (about 5 years, ~$3,300 interest), adding $100/month pays it off roughly 17 months sooner and saves about $700 in interest. Find that $100 from one tighter grocery week or a cancelled subscription and you've bought yourself more than a year of freedom.
How long does it take to pay off a loan?
It comes down to balance, rate, and payment. These are typical payoff times at a 7% APR (estimates — use the calculator for your exact numbers):
| Loan balance | Monthly payment | Payoff time | Total interest |
|---|---|---|---|
| $5,000 | $150 | ~3 yr 2 mo | ~$580 |
| $10,000 | $250 | ~3 yr 10 mo | ~$1,470 |
| $20,000 | $400 | ~5 yr | ~$3,950 |
| $30,000 | $550 | ~5 yr 6 mo | ~$6,300 |
Should you pay off a loan faster or save instead?
Paying down a loan is a guaranteed, tax-free return equal to its interest rate. If your loan is above roughly 6–8%, clearing it usually beats what a safe investment earns. Below that, once you have a starter emergency fund, splitting the extra between debt and savings is reasonable. High-interest debt (credit cards especially) almost always wins the comparison, which is why a credit card payoff calculator is often the first place to point your extra dollars.
Loan payoff FAQ
How long will it take to pay off my loan?
It depends on your balance, interest rate, and monthly payment. Enter those above and the calculator shows the exact number of months and your payoff date. As a rule of thumb, the higher your payment relative to the balance, and the lower the rate, the faster it clears. Adding even a small extra payment shortens the timeline noticeably because every extra dollar goes straight to principal.
How much interest will I pay on my loan?
Total interest is every payment you make minus the amount you originally borrowed. The calculator adds it up month by month from your rate and payment. On a typical $15,000 loan at 8% APR paid at $300 a month, you'd pay roughly $3,300 in interest over about five years. Raising the payment or the extra amount cuts that number directly.
Does paying extra on a loan actually help?
Yes, and more than most people expect. Because interest is charged on the remaining balance, every extra dollar you pay removes principal that would otherwise keep accruing interest for years. Try nudging the extra-payment field up by $50 and $100 and watch the payoff date and total interest both drop. The earlier in the loan you add extra, the bigger the effect.
Should I pay off my loan early or invest the money instead?
Compare the loan's interest rate to what your savings or investments reliably earn. Paying off debt is a guaranteed return equal to the loan's rate. If your loan is above roughly 6 to 8 percent, paying it down usually beats what a safe investment earns after tax. Below that, and with a solid emergency fund in place, investing the extra can make sense. High-interest debt almost always wins the comparison.
What is a loan amortization schedule?
An amortization schedule is a month-by-month table of your loan: each row shows that month's payment split into interest and principal, plus the remaining balance. Early on, most of the payment goes to interest; over time the split flips toward principal. This calculator builds the full schedule and lets you download it as a spreadsheet or print it.
Is there a penalty for paying off a loan early?
Some loans (a few mortgages, older auto and personal loans) carry a prepayment penalty for paying off early or making large extra payments. Most modern personal and auto loans, and all federal student loans, do not. Check your loan agreement for a 'prepayment' clause before making a big lump-sum payment.
How can I pay off my loan faster?
Add a fixed extra amount to every payment, apply any windfall (tax refund, bonus) directly to principal, or switch to biweekly payments (which sneaks in one extra full payment a year). Even $25 to $50 a month, found from a tighter grocery week or a cancelled subscription, meaningfully shortens the loan. The calculator shows exactly how much time and interest each extra amount saves.
Can I download my loan payoff schedule as a spreadsheet?
Yes. Use the Download CSV button to save the full month-by-month amortization schedule, which opens in Excel, Google Sheets, or Numbers. There's also a print option for a paper copy. No sign-up is required.
How this is calculated
This is a standard loan amortization, the same math a bank uses to build your payment schedule. Nothing is estimated or fudged; given your balance, rate, and payment, the payoff date and total interest are exact.
- Convert your APR to a monthly rate:
APR / 12. A 7% APR becomes about 0.583% per month. - Each month, interest accrues on the current balance:
balance x monthly rate. Whatever's left of your payment reduces the principal. - In date mode, the required payment is solved with the amortization formula
P = B x r / (1 - (1 + r)^-n), wherenis the number of months. - Repeat month by month until the balance hits zero. An extra payment goes 100% to principal, which is why it saves both time and interest, both shown against your baseline.
What it assumes
- A fixed interest rate and interest that compounds monthly (true for most mortgages, auto, and personal loans).
- Payments are equal and on time; fees, insurance, escrow, and prepayment penalties are not included.
- Extra payments are applied to principal immediately, as most lenders do when you specify 'principal only.'
Sources
- CFPB: What is amortization? — how loan payments split between principal and interest
- CFPB: Owning a home & loan estimates — official APR and loan-cost guidance
Last updated: July 2026 An educational estimate, not a loan offer or payoff quote. Confirm your exact balance, rate, and any prepayment terms with your lender before making decisions.