Loan Payoff Calculator
Estimate monthly payoff time, total interest, and the effect of extra payments.
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| Year | Ending balance | Interest that year |
|---|---|---|
| 1 | 787,088.3 | 27,088.3 |
| 2 | 567,700.69 | 20,612.39 |
| 3 | 341,640.19 | 13,939.5 |
| 4 | 108,703.85 | 7,063.66 |
| 5 | 0 | 888.28 |
How loan payoff time is estimated
Loan payoff time depends on the remaining balance, interest rate, monthly payment, and any extra payments. This calculator estimates how long payoff may take, total interest, and the effect of paying extra principal.
Use it to compare monthly payment scenarios, extra payments, and interest assumptions. Actual results depend on the loan contract, interest calculation method, and prepayment rules.
Formula or logic
- Monthly interest = Remaining balance × Monthly rate
- Principal reduction = Monthly payment - Monthly interest
- Extra payment reduces remaining balance directly
Example
When extra principal is paid, the balance used for future interest becomes lower. This usually reduces total interest and shortens payoff time, depending on rate, remaining term, and extra payment amount.
Common questions
Is extra payment always best?
Not always. Consider the loan rate, prepayment penalties, emergency cash needs, and other financial priorities.
How is the monthly rate calculated?
A simple estimate divides the annual rate by 12. Actual loans may use different rules, so check the contract.
Will this match my lender exactly?
Not necessarily. Lenders may use different amortization methods, fee rules, payment dates, and prepayment policies.
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