Loan Payoff Calculator
Works for car loans, personal loans, student loans — any fixed-rate balance. See your payoff date and what an extra payment saves.
Fixed-rate simple interest, payments applied monthly. Check that your lender applies extra amounts to principal.
How loan payoff time is calculated
Each month, interest accrues on the remaining balance; whatever your payment covers beyond that interest reduces principal. For a fixed rate and payment, the payoff length follows the amortization relationship:
The calculator simulates month by month (matching how lenders actually post payments) and applies your extra amount straight to principal.
Worked example
A $12,000 balance at 8.5% APR with a $300/month payment takes about 4 years and roughly $2,160 of interest. Adding $50/month shortens it to about 3 years 4 months and saves around $364 and 8 months — small change, real money.
Making extra payments actually work
- Tell the lender it’s a principal-only payment. Some servicers otherwise treat extra money as an early next payment, which saves you nothing. Most apps have a “apply to principal” toggle.
- Check for prepayment penalties. Rare on auto and personal loans today, but scan your agreement.
- Earlier dollars save more. An extra $500 in month 3 beats $500 in year 3, because it stops interest compounding for longer.
- Biweekly trick: paying half your payment every two weeks makes 26 half-payments — one full extra payment per year — without feeling it.
Which debts this fits
Anything with a fixed APR and level payments: auto loans, personal loans, private student loans, medical payment plans, BNPL consolidations. For credit cards’ shrinking minimums use the minimum payment calculator; for multiple debts at once use the snowball or avalanche planner.
Frequently asked questions
How do I find the payoff amount vs. my current balance?
The payoff amount is the balance plus interest accrued since your last payment (per-diem interest), sometimes minus rebates. Lenders quote an exact 10-day payoff figure on request. For planning, the current balance is close enough; for actually closing the loan, use the official payoff quote.
Should I pay off my loan early or invest the money?
Compare the loan APR to what you could reasonably earn after tax. Paying off an 8.5% loan is a guaranteed 8.5% return — hard to beat safely. Low-rate loans (under ~4%) make the case for investing stronger. Guaranteed savings vs. uncertain returns is also a risk-tolerance question, not just math.
Does paying off a loan early hurt my credit score?
Sometimes a small, temporary dip — the closed account no longer contributes an active installment line to your credit mix. The effect is minor next to the benefit of being debt-free and freeing up cash flow.
Why is my actual interest slightly different from the calculator?
Lenders differ in day-count conventions (daily simple interest vs. monthly accrual), payment posting dates and rounding. Amounts within a few dollars are normal; the timeline should match almost exactly.
Last reviewed: 2026-08-20 · Report an issue