№ 042 · Debt & loans cluster
Loan Payoff Calculator
See what a little extra each month really does. Add to your payment and watch the loan pay off early — with the exact interest saved and the months you cut, side by side against doing nothing.
Extra payments · interest & time saved
On a mortgage? Paying every two weeks gets you a similar head start automatically — see the Biweekly Mortgage Calculator. Or, to lower the payment instead of the term, a Mortgage Recast re-amortizes a lump sum. Wondering whether to prepay at all or invest instead? Settle it with Mortgage Payoff vs Invest.
Your loan01
$
%
The extra02
$
Interest saved
$1,379.79
Paid off 1y 3m sooner$500.95/mo base payment
Without extra
Total interest$5,056.92
$500.95/mo · 60 payments
paid off Oct 2031
paid off Oct 2031
With extraSooner
Total interest$3,677.13
$650.95/mo · 45 payments
paid off Jul 2030
paid off Jul 2030
- Baseline
- With extra
| Start | Baseline $25,000.00, With extra $25,000.00 |
|---|---|
| Year 0.6 | Baseline $22,541.39, With extra $21,471.50 |
| Year 1.2 | Baseline $19,973.18, With extra $17,785.70 |
| Year 1.8 | Baseline $17,290.49, With extra $13,935.60 |
| Year 2.3 | Baseline $14,488.20, With extra $9,913.86 |
| Year 2.9 | Baseline $11,560.99, With extra $5,712.83 |
| Year 3.5 | Baseline $8,503.28, With extra $1,324.53 |
| Year 4.1 | Baseline $5,309.27, With extra $0.00 |
| Year 4.7 | Baseline $1,972.87, With extra $0.00 |
| Year 5.0 | Baseline $0.00, With extra $0.00 |
Accelerated payoff · by year
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $4,344.74 | $1,666.66 | $18,855.24 |
| 2 | $4,821.80 | $1,189.60 | $12,233.45 |
| 3 | $5,335.85 | $675.54 | $5,097.59 |
| 4 | $3,897.59 | $145.40 | $0.00 |
How it works · methodology
The math, in the open.
payment = P · [ r(1+r)^n ] / [ (1+r)^n − 1 ] each extra dollar → principal, so next month's interest is charged on a smaller balance interest saved = baseline total interest − accelerated total interest
- P
- Remaining loan balance
- r
- Monthly interest rate (APR ÷ 12)
- n
- Months remaining on the loan
Assumptions & limits
- Fixed APR for the rest of the term; the extra is applied as principal every month.
- The scheduled payment is unchanged — extra payments shorten the term, they don’t lower the payment.
- An extra payment is capped at the remaining balance (you can’t pay more than you owe).
- Assumes no prepayment penalty — check your loan agreement. An estimate, not a payoff quote.
Sources
By the MintNumber Editorial Team·Reviewed
Frequently asked
Questions about paying off loans early
Does paying extra reduce my term or my monthly payment?
The term. Your scheduled payment stays the same — the extra goes entirely to principal, so the balance falls faster and the loan ends earlier. You simply make fewer payments, not smaller ones.
How much does an extra $100 a month really save?
It depends on the balance, APR, and time left — the higher the rate and the more time remaining, the bigger the win. Put your numbers in above: the calculator shows the exact interest saved and how many months sooner the loan is gone.
Should I pay off the loan early or invest the money instead?
Compare the loan APR (a guaranteed, risk-free return when you pay it down) against what you could realistically earn investing. High-rate debt — credit cards, many personal loans — is usually worth killing first; for a low-rate loan, investing may come out ahead. There is also real value in being debt-free.
Is there a prepayment penalty?
Most mortgages, auto, and personal loans have none, but a few charge a fee for paying off early. Check your loan agreement before making large extra payments. This calculator assumes no prepayment penalty.