Loan Payoff Calculator

Use our free loan payoff calculator to see how extra monthly payments can shorten your loan term and save you money on interest. Compare payoff time and total interest with and without extra payments.

Financial

Currency

Current Balance

Annual Interest Rate (%)

Remaining Term (years)

years

Extra Monthly Payment

Formula

Making extra payments on your loan reduces the principal faster, shortening the loan term and reducing total interest. This calculator shows you exactly how much time and money you can save.

Accelerated payoff calculated by applying extra payment to principal each month

Percentage: The percentage value you want to apply

Number: The original number or value

Result: The calculated result

How It Works

1Enter your current loan balance and interest rate.
2Enter the remaining term on your loan.
3Enter the extra amount you can pay each month.
4The calculator shows your new payoff time and total savings.

Examples

$25,000 at 6%, 5 years remaining, $100 extra/month

1.Normal payment = $483.32/mo, Total = $28,999, Interest = $3,999
2.With $100 extra: actual payment = $583.32/mo
3.Payoff in ~47 months (vs 60), saves ~$800 in interest

Result: 3 yr 11 mo

Frequently Asked Questions

Extra payments reduce the principal balance faster, which means less interest accrues over the life of the loan.

Some loans have prepayment penalties. Check your loan agreement before making extra payments.

If your investment returns are higher than your loan interest rate, investing may be better. Otherwise, paying off debt provides a guaranteed return.

Yes, lump sum payments also reduce principal and shorten the loan term.

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CalculateMe Team

Last updated: 2026-07-15

Frequently Asked Questions

Extra payments reduce the principal balance faster, which means less interest accrues over the life of the loan.

Some loans have prepayment penalties. Check your loan agreement before making extra payments.

If your investment returns are higher than your loan interest rate, investing may be better. Otherwise, paying off debt provides a guaranteed return.

Yes, lump sum payments also reduce principal and shorten the loan term.

Loan Payoff Calculator

Formula

How It Works

Examples

$25,000 at 6%, 5 years remaining, $100 extra/month

Frequently Asked Questions

How does paying extra save money?

Is there a penalty for paying off early?

Should I invest or pay off debt?

Can I make lump sum extra payments?

Related Calculators

Related Articles

Loan Payoff Calculator

Formula

How It Works

Examples

$25,000 at 6%, 5 years remaining, $100 extra/month

Frequently Asked Questions

How does paying extra save money?

Is there a penalty for paying off early?

Should I invest or pay off debt?

Can I make lump sum extra payments?

Related Calculators

Related Articles