Loan Payoff Calculator
See how extra monthly payments shorten a loan and cut total interest, with payoff time, months saved and interest saved. Includes a $250,000 worked example.
Results · USD
Payoff time
Interest saved
- Base monthly payment
- $1,580.17
- Months saved
- 95
- Total interest
- $221,243.10
- Total paid
- $471,243.10
Schedule snapshots· 45 rows
- Month
- 1
- Payment
- $1,780.17
- Interest
- $1,354.17
- Principal
- $426.00
- Balance
- $249,574.00
- Month
- 2
- Payment
- $1,780.17
- Interest
- $1,351.86
- Principal
- $428.31
- Balance
- $249,145.69
- Month
- 3
- Payment
- $1,780.17
- Interest
- $1,349.54
- Principal
- $430.63
- Balance
- $248,715.05
Showing 3 of 45 rows — swipe the schedule below for the full table.
| Month | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $1,780.17 | $1,354.17 | $426.00 | $249,574.00 |
| 2 | $1,780.17 | $1,351.86 | $428.31 | $249,145.69 |
| 3 | $1,780.17 | $1,349.54 | $430.63 | $248,715.05 |
| 4 | $1,780.17 | $1,347.21 | $432.96 | $248,282.09 |
| 5 | $1,780.17 | $1,344.86 | $435.31 | $247,846.78 |
| 6 | $1,780.17 | $1,342.50 | $437.67 | $247,409.12 |
| 7 | $1,780.17 | $1,340.13 | $440.04 | $246,969.08 |
| 8 | $1,780.17 | $1,337.75 | $442.42 | $246,526.66 |
| 9 | $1,780.17 | $1,335.35 | $444.82 | $246,081.84 |
| 10 | $1,780.17 | $1,332.94 | $447.23 | $245,634.61 |
| 11 | $1,780.17 | $1,330.52 | $449.65 | $245,184.96 |
| 12 | $1,780.17 | $1,328.09 | $452.08 | $244,732.88 |
| 13 | $1,780.17 | $1,325.64 | $454.53 | $244,278.35 |
| 14 | $1,780.17 | $1,323.17 | $457.00 | $243,821.35 |
| 15 | $1,780.17 | $1,320.70 | $459.47 | $243,361.88 |
| 16 | $1,780.17 | $1,318.21 | $461.96 | $242,899.92 |
| 17 | $1,780.17 | $1,315.71 | $464.46 | $242,435.46 |
| 18 | $1,780.17 | $1,313.19 | $466.98 | $241,968.48 |
| 19 | $1,780.17 | $1,310.66 | $469.51 | $241,498.97 |
| 20 | $1,780.17 | $1,308.12 | $472.05 | $241,026.92 |
| 21 | $1,780.17 | $1,305.56 | $474.61 | $240,552.31 |
| 22 | $1,780.17 | $1,302.99 | $477.18 | $240,075.14 |
| 23 | $1,780.17 | $1,300.41 | $479.76 | $239,595.37 |
| 24 | $1,780.17 | $1,297.81 | $482.36 | $239,113.01 |
| 36 | $1,780.17 | $1,265.50 | $514.67 | $233,116.77 |
| 48 | $1,780.17 | $1,231.04 | $549.13 | $226,718.95 |
| 60 | $1,780.17 | $1,194.26 | $585.91 | $219,892.65 |
| 72 | $1,780.17 | $1,155.02 | $625.15 | $212,609.18 |
| 84 | $1,780.17 | $1,113.15 | $667.02 | $204,837.93 |
| 96 | $1,780.17 | $1,068.48 | $711.69 | $196,546.22 |
| 108 | $1,780.17 | $1,020.82 | $759.35 | $187,699.21 |
| 120 | $1,780.17 | $969.96 | $810.21 | $178,259.69 |
| 132 | $1,780.17 | $915.70 | $864.47 | $168,187.98 |
| 144 | $1,780.17 | $857.81 | $922.36 | $157,441.76 |
| 156 | $1,780.17 | $796.03 | $984.14 | $145,975.84 |
| 168 | $1,780.17 | $730.12 | $1,050.05 | $133,742.03 |
| 180 | $1,780.17 | $659.80 | $1,120.37 | $120,688.90 |
| 192 | $1,780.17 | $584.77 | $1,195.40 | $106,761.58 |
| 204 | $1,780.17 | $504.71 | $1,275.46 | $91,901.51 |
| 216 | $1,780.17 | $419.29 | $1,360.88 | $76,046.24 |
| 228 | $1,780.17 | $328.15 | $1,452.02 | $59,129.12 |
| 240 | $1,780.17 | $230.90 | $1,549.27 | $41,079.02 |
| 252 | $1,780.17 | $127.15 | $1,653.02 | $21,820.08 |
| 264 | $1,780.17 | $16.44 | $1,763.73 | $1,271.32 |
| 265 | $1,278.21 | $6.89 | $1,271.32 | $0.00 |
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Educational estimates · not financial advice · free, no signup
How this was calculated
Standard EMI plus extra principal each month. Interest each month = balance × r/12. Continues until balance clears.
Want more detail? Full formula notes & FAQs ↓
Detailed guide
What it is, how to use it, how to read the numbers, common mistakes, a worked example, formulas, and FAQs.
What this calculator is
A loan's required payment is set for its full term, but paying a little extra each month goes entirely to principal, which reduces the balance on which future interest is charged. The effect compounds: a modest extra payment can remove years from a mortgage and tens of thousands of dollars of interest. This calculator takes the loan balance, annual rate, original term and an extra monthly amount. It shows the scheduled payment, the new payoff time, the months saved, total interest and interest saved versus the original schedule. It assumes a fixed rate, payments on time and that the lender applies extra amounts to principal with no prepayment penalty.
When to use / who it helps
- You want to know how much an extra $100 or $200 a month would shorten a mortgage or car loan.
- You are deciding between prepaying a loan and investing the money.
- You want to see total interest with and without extra payments.
- You are checking whether your lender allows extra principal payments.
- You are setting a target payoff date.
How to use
Steps
- Enter the current loan balance.
- Enter the annual interest rate.
- Enter the original term in years.
- Enter the extra amount you can pay each month.
- Read payoff time, months saved and interest saved.
- Increase the extra amount in steps to see the effect.
How to interpret results
- Base monthly payment is the required payment without any extra.
- Payoff time shows how long the loan lasts with the extra amount.
- Interest saved is the difference in total interest versus the original schedule.
- Early extra payments save more than late ones because they reduce the balance for longer.
- The figures assume a fixed rate and no fees.
Common mistakes & gotchas
- Not telling the lender to apply extra payments to principal.
- Ignoring prepayment penalties in the loan contract.
- Using the remaining term, rather than the original term, with the original balance.
- Paying extra on a low-rate loan while carrying high-interest debt.
- Forgetting that adjustable rates change the result.
Worked example
Worked example — $250,000 at 6.5% for 30 years, plus $200 a month
- Base payment: 250,000 at 0.5417% monthly for 360 months gives $1,580.17.
- Without extra payments, total interest is 1,580.17 × 360 − 250,000 ≈ $318,861.
- With $200 extra, the loan clears in 265 months (22 years 1 month), 95 months sooner.
- Total interest falls to about $221,243, saving about $97,618.
Result: An extra $200 a month saves about 95 months and $97,618 of interest.
To load the form's own demo values, tap Try example above the Calculate button.
How to calculate / formula
Standard EMI plus extra principal each month. Interest each month = balance × r/12. Continues until balance clears.
Frequently asked questions
How do extra payments shorten a loan?
They reduce principal immediately, so less interest accrues in every following month.
Is it better to pay extra or invest?
It depends on the loan rate, investment risk and your goals. Paying extra earns a certain return equal to the loan's rate.
Do I need to tell my lender?
Often yes. Specify that extra amounts go to principal.
Will my monthly payment change?
Usually not. The term shortens instead, unless the lender recasts the loan.
Does this work for car loans and personal loans?
Yes, for amortizing loans with a fixed rate.
What about biweekly payments?
Paying half the payment every two weeks makes one extra monthly payment a year, which is similar to adding about one-twelfth of the payment each month.