Loan Payoff Calculator
See how extra monthly payments shorten your loan and cut total interest. Compare payoff time and interest with and without the extra payment.
Independently verified for accuracy
Calculator by Toolsloft ↗- Months to payoff
- 45
- Months saved
- 13
- Interest paid
- $2,370.33
- Interest saved
- $701.94
This calculator shows how much faster you clear a loan and how much interest you save by adding extra to each payment. Enter the balance, rate, current payment, and the extra you can afford to see the payoff time and savings.
How this is calculated
It amortizes the loan twice, accruing monthly interest at the annual rate divided by twelve and applying the payment each month. One run uses your current payment, the other adds the extra amount; the difference in months and interest is the saving.
How to use
- Enter the current balance and interest rate.
- Enter your current monthly payment and the extra you plan to add.
- Read the new payoff time, months saved, and interest saved.
Examples
- $20k at 6%, $400 + $100 extra:
paid off in 45 mo, saves $701.94 - $300k at 6.5%, $200 extra:
saves 84 months
FAQ
- How does a small extra payment save so much?
- Every extra dollar goes straight to principal, which stops future interest on that amount. Over a long loan, those avoided interest charges compound into large savings.
- Why does a low payment return an error?
- If the monthly payment is not larger than the first month interest, the balance never falls and the loan never pays off. Raise the payment above that interest amount.
- Is the extra payment applied to principal?
- Yes. The tool assumes the full extra amount reduces principal each month. Confirm your lender applies extra payments the same way and has no prepayment penalty.