💳 Loan Payoff Calculator
Calculate how fast you can pay off your loan with extra monthly payments. See total interest saved, payoff timeline, and amortization schedule. 100% free.
Free No Signup Required Browser-Based
Total Interest Saved
$865.44
Time Saved
11 Months (0.9 yrs)
Standard Monthly Payment
$489.15
Total Interest: $4349.22
With Extra Payment
$589.15
Paid off in 49 months (vs 60 mo)
Total Cost of Loan
$28,483.78
Standard: $29349.22
How to Use Loan Payoff Calculator
- Enter your current loan balance amount
- Input the annual interest rate and original loan term in years
- Enter an optional extra monthly payment amount to test payoff acceleration
- Review total interest saved and your new earlier debt-free date
- Optionally view the month-by-month amortization schedule
Frequently Asked Questions
How does extra monthly payment reduce loan payoff time?
Extra payments go directly toward reducing the principal balance. Because interest is calculated on the remaining principal, paying down the balance faster drastically reduces total interest and cuts years off your loan term.
What is the formula for calculating loan payments?
Monthly loan payment is calculated using M = P[r(1+r)^n] / [(1+r)^n - 1], where P is principal, r is the monthly interest rate (annual rate / 12), and n is the total number of monthly payments.
Should I make extra monthly payments or one lump sum?
Both strategies save interest. Regular extra monthly payments create disciplined savings and steady acceleration, whereas lump sum payments immediately reduce the principal baseline.
Can I use this for auto loans and student loans?
Yes, this calculator works for any standard fixed-rate amortized loan including car loans, student loans, personal loans, and mortgages.