Loan Payoff Calculator

Enter your loan balance, its interest rate, and your monthly payment. This loan payoff calculator shows how many months until the loan is gone and how much interest you will pay along the way – right in your browser, with nothing saved.

How the loan payoff calculator works

The loan payoff calculator works the way your lender does: each month it adds interest to the balance, subtracts your payment, and repeats until the balance reaches zero. The number of cycles is your payoff timeline. A lower rate or a larger payment means less of your money goes to interest and more to knocking down the principal.

Estimates for general information only; not financial advice. Your loan may use daily compounding, fees, or a set amortization schedule, so exact figures can differ from this estimate.

A worked example

Imagine a $15,000 loan at 7% APR with a $350 monthly payment. The first month’s interest is about $88, so more than $260 of your payment reduces the principal right away. Because the rate is modest, the balance falls steadily and predictably.

The loan is paid off in 50 months - a little over four years - with roughly $2,311 in interest, or $17,311 in total. Adding even $50 to the monthly payment shortens the term and cuts the interest. A borrower who bumps the payment to $450, for instance, clears the same loan in under 38 months and saves several hundred dollars in interest; test your own figures in the calculator above.

How to pay off a loan faster

You can shorten almost any loan three ways: pay extra toward principal, refinance to a lower rate, or make biweekly payments so you fit in an extra month’s worth each year. Since interest is charged on the outstanding balance, every additional dollar of principal you clear reduces future interest.

The Federal Trade Commission explains how to get out of debt without falling for costly traps, and the Consumer Financial Protection Bureau describes how lenders view your debt-to-income ratio - useful if you are weighing a refinance. Always check whether your loan carries a prepayment penalty before paying ahead.

Comparing several balances? The free Debt Payoff Spreadsheet and our other debt and loan calculators help you decide where an extra payment does the most good.

Frequently asked questions

What counts as the loan balance?

Enter the current principal you still owe, not the original loan amount. The calculator projects payoff from today’s balance forward.

Is APR the same as my interest rate?

For most installment loans the APR closely tracks the interest rate the tool uses. It converts the yearly figure to a monthly rate to match how interest accrues.

Does a bigger payment really save that much?

Yes. Money above the required payment goes to principal, lowering every future interest charge. On longer loans this can save hundreds or thousands of dollars.

Can I use this for a car loan or personal loan?

Yes. Any fixed-rate loan with a steady monthly payment works - auto, personal, student, or a fixed home-equity loan.

What if my payment barely covers the interest?

If the payment is at or below the first month’s interest, the balance never falls and the calculator warns you. Increasing the payment above that amount is the only way to make progress.

Planning your whole payoff? Browse our debt and loan calculators or try the debt payoff calculator next.