🏦 Loan Payoff Calculator
Enter the loan amount, rate and term to get the monthly payment and total interest — then add an extra monthly amount to see how much time and interest you save.
Monthly payment
$391.32
Total interest
$3,479.38
Paid off in
5y 0m
Paying $491.32/mo ($100 extra) clears it in 3y 11m and saves $1,260.53 in interest.
Standard amortization: PMT = P·i / (1 − (1+i)⁻ⁿ). Extra payments cut interest and time. Educational, not advice. 🔒 In your browser.
How the loan payoff calculator works
The monthly payment on an amortising loan is PMT = P·i / (1 − (1+i)⁻ⁿ), where P is the principal, i the monthly rate and n the number of payments. Adding an extra amount each month pays down the principal faster; the tool re-simulates the payoff to show the new term and interest saved.
Even a small extra payment can save meaningful interest and years, because it attacks the principal directly. Check your loan allows overpayments without penalty. Educational — not financial advice.
Frequently asked questions
How is a loan’s monthly payment calculated?
PMT = P·i / (1 − (1+i)⁻ⁿ), where P is the amount borrowed, i the monthly interest rate (annual ÷ 12) and n the number of monthly payments. This is the standard amortization formula.
How much do extra payments save?
A lot, because extra money goes straight to principal, which then stops accruing interest. The tool shows the reduced payoff time and the interest saved for any extra monthly amount.
What is total interest?
The sum of all interest over the life of the loan — the monthly payment times the number of payments, minus the amount borrowed.
Does a shorter term cost less?
Yes — a shorter term means higher monthly payments but far less total interest, because you’re borrowing the money for less time.
Is this the same as a mortgage calculator?
The maths is the same amortization. This is a general loan tool; for a home loan with taxes and insurance, use a dedicated mortgage calculator.
Educational information, not financial advice. These calculators use standard formulas with the figures you enter; results are illustrations, not guarantees. For decisions about your money, consult a qualified, regulated financial professional.