How the payoff is calculated
Months to pay off = −log(1 − Balance × r ÷ Payment) ÷ log(1 + r) r = Rate ÷ 12
Payment for a target = Balance × r ÷ (1 − (1 + r)^−Months)
Example: $15,000 at 7% with a $300 payment takes 5 years (60 payments) and $2,573.02 of interest. To be done in 3 years, pay $463.16 a month, $163.16 more; interest falls to $1,673.63, saving $899.38.
Ways to pay off a loan faster
- Round up every payment, or add windfalls like tax refunds.
- Biweekly half-payments add up to one extra monthly payment a year.
- Make sure extra money goes to principal, and check for prepayment penalties.
- Paying off the highest-rate debt first saves the most; the debt payoff calculator plans several loans.
See every payment on a schedule with the amortization calculator.
Frequently asked questions
How do I calculate when my loan will be paid off?
Enter the balance, rate and payment: the calculator runs the loan month by month. For a fixed-rate loan, the formula is −log(1 − B × r ÷ P) ÷ log(1 + r).
How much extra should I pay to pay off my loan early?
Enter your target in months and the calculator gives the exact payment. Even small extras help: $50 a month on a 5-year car loan often cuts several months.
Does paying extra reduce my monthly payment?
Usually not; it shortens the loan instead. Some lenders will recast a mortgage to lower the payment after a large lump sum.
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