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Loan payoff calculator
Any fixed-rate installment loan: car, personal, student, boat, home. Put in what you owe and see how much an extra payment saves and how soon you are done.
- Works for
- Fixed-rate, monthly-payment loans
- Not for
- Credit cards or variable-rate lines
- Best input
- Balance + current payment from your statement
$1,166
interest you never pay
- Monthly payment
- $512.91 + $100
- Debt-free
- 4 yrs 1 mo
- Time cut
- 11 mo
- Total interest
- $4,609 vs $5,775
Every extra dollar you put in saves about $0.24 in interest ($4,800 extra in total), a guaranteed, tax-free return equal to your 8.5% rate.
Amortization schedule with extra payments
| Year | Interest | Principal | Extra | Balance |
|---|---|---|---|---|
| 1 | $1,916 | $4,239 | $1,200 | $19,561 |
| 2 | $1,436 | $4,719 | $1,200 | $13,642 |
| 3 | $912 | $5,243 | $1,200 | $7,200 |
| 4 | $343 | $5,812 | $1,200 | $188 |
| 5 | $1 | $188 | $0 | $0 |
Ask the trail guide about this plan
Get a plain-English read of the numbers above: what's driving the savings, what to check with your lender, and trade-offs to weigh. Written by AI from your inputs, so double-check anything important.
What the extra payment calculator tells you
Three numbers matter when you prepay a loan: how many payments you skip, how much interest you avoid, and how much you get back per extra dollar. The calculator shows all three and redraws your balance path so you can see where the new payoff month lands.
Because an extra payment goes entirely to principal, the interest you save equals your loan rate earned on that money for every month it would otherwise have stayed on the balance. On an 8.5% loan, that is an 8.5% risk-free return, better than most savings accounts.
Before you send extra money
Check the loan agreement for a prepayment penalty (most auto, personal and federal student loans have none). Ask the lender to apply extra money to principal, not to next month's payment, and confirm the principal dropped on your next statement.
Keep an emergency fund first. Money sent to a loan is hard to get back if your car breaks down, and a missed payment later costs more than the interest you saved.
Several loans at once? The debt snowball and avalanche calculator orders them for you.
Questions people ask
How do I calculate my loan payoff date?
Divide nothing by hand: the payoff month comes from the amortization formula. Each month interest is balance × APR ÷ 12, the rest of your payment reduces the balance, and the loan ends when the balance reaches zero. Enter your balance, rate and payment above to get the exact month.
Is it better to pay extra monthly or one lump sum?
The same total money saves more the earlier it arrives. A lump sum today beats the same amount spread over the year; spreading it monthly beats waiting to pay it all in December. Try both in the calculator.
Does paying extra lower my monthly payment?
Usually not. On most installment loans the payment stays the same and the loan simply ends sooner. Some mortgages allow a recast that re-computes a lower payment after a large prepayment.
What is a loan interest savings calculator?
It compares total interest on your current schedule with total interest after extra payments. The difference, shown in the big number above, is what you save.
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