Loan Payoff Calculator
Enter your balance, rate and current monthly payment, plus any extra you can add. You get the payoff time, total interest, and what extra payments save you.
Assumes a fixed-rate loan with monthly payments. The current payment must cover at least the monthly interest or the loan never amortizes.
Frequently asked questions
How much faster do I pay off a loan with extra payments?
Extra payments shorten the loan because every dollar above the minimum goes straight to principal, which reduces the balance that future interest is charged on. On a $25,000 car loan at 7% with a $495 payment, paying $100 extra a month cuts about 12 months off and saves roughly $1,040 in interest. The calculator shows the exact months and dollars for any extra amount.
Is it better to pay off the loan or invest the extra money?
Compare the loan rate to your expected investment return after tax. Paying off a 7% loan is a guaranteed 7% return (tax-free on the interest you no longer pay); beating that with investments is uncertain. High-rate debt (credit cards, high personal loans) almost always wins over investing. Low-rate debt (sub-4% mortgage) often loses to the market over the long run.
Why does the interest saved look small on a short loan?
Because there is less time for interest to compound. On a 12-month loan, extra payments barely move the total interest — the loan is nearly all principal already. Extra payments save the most on long, high-rate loans like 30-year mortgages and long car loans.
Does this handle the loan payoff amount vs the balance?
No — enter your current balance, not a payoff quote. A payoff quote may include interest accrued to a future date or a prepayment penalty, which this calculator does not model. For a true early-payoff number, ask your lender for the exact payoff figure.