Loan Payoff Calculator

What is a loan payoff calculator?

A loan payoff calculator shows how long it will take to pay off a loan when you make a fixed monthly payment. It also shows total interest you will pay over the life of the loan. By increasing your monthly payment, you can shorten the payoff period and save on interest. This tool works for personal loans, auto loans, student loans, and any fixed-rate loan.

Enter your current loan balance, the annual interest rate, and the monthly payment you plan to make. The calculator will tell you the number of months until the loan is paid off and the total interest paid. If the payment is too low to cover the interest, the loan will never be paid off — increase your payment to see a finite payoff time.

How extra payments affect your loan

When you pay more than the minimum each month, the extra amount goes toward principal. That reduces the balance faster, so less interest accrues next month. Over time, this can cut years off your loan and save thousands in interest. Even small extra payments can make a big difference on long-term loans like mortgages.

Strategies to pay off debt faster

• Round up your payment: Pay an extra $50 or $100 each month.
• Make biweekly payments: Half your monthly payment every two weeks results in one extra full payment per year.
• Put windfalls toward the loan: Tax refunds, bonuses, or gifts can significantly reduce the balance.
• Refinance to a lower rate: If you qualify, a lower rate means more of each payment goes to principal.
• Target high-interest debt first (avalanche) or smallest balance first (snowball) when you have multiple loans.

When to use a loan payoff calculator

Use this calculator before taking a loan to see how different payment amounts affect payoff time and total cost. Use it after you have a loan to plan extra payments and see when you will be debt-free. It is also useful to compare refinance options or to decide whether to use savings to pay off a loan early.