Loan Payoff Calculator
Find payoff time and interest savings when you add a fixed extra monthly payment.
Your result
FINANCIALEnter your values and select calculate.
On this page How it works & practical examples
How to use the Loan Payoff Calculator
Use the balance outstanding today, not the original amount borrowed. Enter the regular monthly payment and the additional amount you want applied to principal. The calculator repeats the balance update until the loan is paid off, reducing the final payment when necessary. It also compares the extra-payment plan with the regular-payment plan when that baseline repays within the supported horizon.
The calculation
Worked example
A $1,000 balance at zero interest with a $100 regular payment takes 10 months. Adding $100 each month reduces the payoff period to five months, with no interest to save.
Assumptions and limits
This assumes a fixed nominal rate, monthly interest and end-of-month payments, with no fees or penalties. A payment that does not cover the first month’s interest cannot amortize the loan. The model supports at most 1,200 months. Ask your lender whether extra payments reduce principal and whether prepayment fees apply; a contract may use different daily accrual or rounding rules.
Common questions
Why is my final payment smaller?
It only needs to cover the remaining balance and the last month’s interest, so a full scheduled payment may be unnecessary.
What does the baseline warning mean?
The regular payment alone may not amortize the balance, or may take more than the 1,200-month limit. The extra-payment plan can still be calculated if it fits the limit.