Loan Payoff Calculator

Calculate your loan payments, total interest costs, and see how extra payments can help you pay off your loan faster.

Personal
Auto
Student
Business

How to Use This Calculator

Enter your loan details to calculate your monthly payment, total interest paid, and see your amortization schedule. Add an extra monthly payment to see how it can reduce your loan term and total interest.

Loan Calculation Formula

Monthly Payment = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ]

Where: P = Principal loan amount, i = Monthly interest rate, n = Number of monthly payments

Default Loan Settings

Each loan type has default settings that you can customize:

  • Personal Loan: $10,000 at 7.5% for 5 years
  • Auto Loan: $25,000 at 5.5% for 5 years
  • Student Loan: $30,000 at 6.0% for 10 years
  • Business Loan: $50,000 at 8.0% for 7 years

Loan Calculation Results

Amortization Schedule

Payment # Date Payment Principal Interest Extra Payment Total Payment Remaining Balance

About Loan Payoff Calculator

Our Loan Payoff Calculator helps you understand the financial implications of your debt. By inputting your loan amount, interest rate, and term, you can calculate your monthly payment, total interest paid over the life of the loan, and see how making extra payments can significantly reduce both your loan term and total interest costs.

This tool is particularly useful for borrowers who want to:

  • Understand their monthly loan obligations
  • Plan for early loan payoff
  • Compare different loan scenarios
  • Visualize how extra payments impact loan duration
  • Make informed decisions about refinancing

Frequently Asked Questions

Making extra payments directly reduces your principal balance, which in turn reduces the total interest you'll pay over the life of the loan. Even small additional payments can significantly shorten your loan term. For example, adding just $50 to your monthly payment on a $10,000, 5-year personal loan at 7.5% could save you over $400 in interest and cut your loan term by several months.

An amortization schedule is a table that shows the breakdown of each loan payment into principal and interest over the life of the loan. In the early years of a loan, a larger portion of each payment goes toward interest. As the loan matures, more of each payment goes toward reducing the principal balance. Our calculator provides a detailed amortization schedule so you can see exactly how your payments are applied.

The monthly loan payment is calculated using the formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ], where M is the monthly payment, P is the principal loan amount, i is the monthly interest rate (annual rate divided by 12), and n is the total number of payments. This formula ensures that each payment covers both interest and principal in such a way that the loan is paid off exactly at the end of the term.

Whether to pay off your loan early depends on your financial situation and goals. Benefits include saving on interest, reducing debt, and increasing financial security. However, consider if you could earn a higher return by investing that money elsewhere, especially if you have a low interest rate. Also, ensure you have adequate emergency savings and are contributing sufficiently to retirement accounts before making extra loan payments.

Different loan types have different typical terms and interest rates:
  • Personal Loans: Unsecured loans with higher interest rates, typically used for debt consolidation or major purchases
  • Auto Loans: Secured by the vehicle, usually with lower interest rates and shorter terms
  • Student Loans: Often have lower interest rates and longer repayment periods
  • Business Loans: Vary widely based on business size, purpose, and creditworthiness