Ledgerminttools

Free online tool

Loan Payoff Calculator

Estimate payoff time, total interest, and the effect of extra payments on a personal loan, auto loan, or other fixed debt.

Calculate your result

Change any value and the estimates update immediately. Nothing entered here is sent to our server.

Estimated payoff time
Estimated interest
Estimated total repaid

What this calculator shows

The payoff estimate helps you see how balance, interest rate, monthly payment, and extra payment amounts change the remaining life of a loan.

Using extra payment scenarios

Try a small recurring extra payment and compare it with a larger one-time payment. Extra principal payments can reduce interest, but the effect depends on the loan terms and timing.

Important limitations

Some lenders charge prepayment penalties or apply extra payments differently. Check whether your lender applies extra money to principal, future payments, fees, or interest.

Budget guidance

A faster payoff is useful only if it does not create cash-flow stress. Keep enough money for required bills and emergency savings before committing to a higher payment.

How to use it

  1. Enter the current balance, interest rate, and regular monthly payment.
  2. Add any planned extra payment amount.
  3. Compare payoff time and estimated interest, then confirm rules with the lender.

How the calculation works

Each simulated month applies one-twelfth of the APR to the remaining balance and then subtracts the regular and extra payment. The final payment may be smaller. The estimate assumes a fixed rate, no new charges, and that extra money is applied to principal.

Worked example

Start with an $18,000 balance at 8.5% APR and compare a $450 payment with and without $100 extra. The difference shows the approximate time and interest saved, but your lender's statement controls.

Frequently asked questions

What does payment too low mean?

The entered payment does not cover the first month's interest, so the balance would not decline.

Are prepayment penalties included?

No. Check the loan agreement and confirm how the lender applies extra payments.

Calculation method and page content last reviewed: July 20, 2026.

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