Loan Payoff Calculator
Enter your balance, interest rate, and monthly payment to see your exact payoff date, total interest, and total paid. Add an extra monthly payment to instantly see how much time and interest you'd save — often far more than people expect.
June 2030
Payoff date
3 yrs 9 mos
Time to payoff
$2,867.11
Total interest
$17,867.11
Total paid
How to Use Loan Payoff Calculator
Enter your loan details
Type your current balance, APR, and the amount you pay each month.
Add an extra payment
Optionally enter an extra monthly amount to compare an accelerated payoff.
See your payoff plan
Review your payoff date, months remaining, total interest, and the time and interest saved by paying extra.
About Loan Payoff Calculator
How loan payoff is calculated
Each month, interest accrues on your remaining balance at your APR divided by 12, then your payment is applied — first covering that interest, with the remainder reducing principal. This calculator simulates that cycle month by month until the balance hits zero, which is more accurate than a closed-form approximation because it handles the smaller final payment correctly. The result is your payoff month and year, the number of payments remaining, the total interest you'll pay, and the total amount out of pocket.
Why extra payments are so powerful
Every extra dollar you pay goes entirely to principal, which shrinks the balance that next month's interest is charged on. The effect compounds: a modest extra payment early in a loan eliminates many months of interest at the end. On a $15,000 balance at 9.5% APR with a $400 payment, adding just $100 a month typically saves over a year of payments and hundreds of dollars in interest. The comparison card shows your exact time saved and interest saved so you can decide if the extra amount is worth it.
Assumptions and limitations
This tool assumes a fixed APR, monthly compounding, and consistent payments — it's informational only, not financial advice. Real loans may have variable rates, fees, or prepayment penalties, and credit cards use daily compounding with minimum payments that change as the balance falls, so results there are close estimates. If the calculator warns that your payment doesn't cover monthly interest, your balance will grow forever at that payment level — raising the payment even slightly above the interest amount is what turns the corner.
Common uses for Loan Payoff Calculator
- Find the exact month and year a car loan, student loan, or personal loan will be gone
- See whether an extra $50 or $100 a month is worth it in time and interest saved
- Check if a credit card payment is actually making progress against the interest
- Compare payoff timelines at different payment levels before setting a budget
- Plan a debt-free date when prioritizing which balance to attack first
Frequently Asked Questions
How is the payoff date calculated?
The calculator simulates your loan month by month: it adds one month of interest (APR ÷ 12 × balance), subtracts your payment, and repeats until the balance reaches zero. The payoff date is that many months from today, so it shifts as you change the payment or rate.
Why does it say my loan will never be paid off?
If your monthly payment is less than or equal to the interest that accrues each month, the balance never shrinks — it grows. For example, a $10,000 balance at 24% APR accrues $200 of interest monthly, so a $200 payment makes zero progress. The warning shows the minimum payment needed to start reducing principal.
Does this work for credit cards?
Yes, as a close estimate. Enter your card balance, APR, and the fixed amount you plan to pay monthly. Credit cards technically compound daily and their minimum payments shrink with the balance, so paying a fixed amount (as this calculator assumes) actually pays the card off faster than making minimums.
Should I pay extra on my loan or invest the money?
Paying extra earns you a guaranteed return equal to your loan's APR. If your loan rate is higher than what you'd reliably earn investing — common with credit cards and personal loans — extra payments usually win. For low-rate loans the math is closer, and this calculator can't weigh taxes or risk, so treat it as one input to the decision.
Is the interest calculation exact?
It assumes monthly compounding at APR ÷ 12 with payments applied once per month, which matches how most installment loans work. Loans with daily accrual, biweekly payments, or fees will differ slightly. The final payment is prorated internally, so total paid equals your balance plus the interest shown.