Loan Payoff Calculator
See how extra payments can help you pay off your auto, student, or personal loan faster. Calculate interest savings and see your payoff timeline.
Loan Type
Loan Details
The remaining balance on your loan
Your current monthly payment
Additional amount to pay each month
Enter values and click Calculate to see results
How the Loan Payoff Calculator Works
This calculator uses an iterative amortization approach. Each month, interest accrues on your remaining balance. Your payment covers the interest first, with the remainder reducing the principal. Extra payments go entirely toward principal, which reduces future interest charges and shortens your payoff timeline.
Interest = Balance × (Rate ÷ 12)Balance= Remaining loan balanceRate= Annual interest rate (decimal)Principal= Payment - Interest (reduces balance)Extra= Additional amount applied directly to principalExample Scenarios
Auto Loan With Extra Payments
Adding $150/month extra to a $25K auto loan saves over $1,200 in interest and pays it off 14 months sooner.
Student Loan Acceleration
Paying $200 extra on a $40K student loan at 6.8% saves over 3 years and thousands in interest.
When to Pay Extra
- After building an emergency fund (3-6 months of expenses)
- If your loan interest rate is higher than potential investment returns
- When you receive a bonus, tax refund, or other windfall
- If you have no higher-interest debt to pay off first
Extra Payment vs. Investing
If your loan interest rate is low (below 4-5%), you might consider investing extra money instead. However, paying off debt provides a guaranteed return equal to your interest rate, with zero risk.