Loan payoff calculator
Enter what you owe, the rate and what you pay each month to see when it's gone. Add an extra amount to see the months and interest it saves.
- Balance$12,000.00
- Monthly payment at 7.9%$350.00
- Total interest$1,644.98
- Total paid$13,644.98
How to use it
- Enter the current balance and the interest rate from your statement.
- Enter what you actually pay each month, not the minimum unless that's what you pay.
- Read how long it takes and what it costs in interest.
- Try an extra amount to see how much sooner it's gone. Even $50 makes a visible difference on a card balance.
Worked example
$12,000 at 7.9% with a $350 payment.
Month one: interest $79.00, so $271.00 comes off the balance. It takes 39 months, and total interest is $1,644.98.
With $100 extra a month it’s gone in 30 months and interest drops to $1,239.25, saving $405.73 and 9 months.
How it's calculated
Each month: interest = balance × rate ÷ 12, rounded to the cent; balance = balance + interest − payment − extra
The calculator repeats that until the balance reaches zero and counts the months. The last payment is only what’s left. If the payment is less than the first month’s interest, the balance grows and the loan is never paid off.
Simulating month by month, rather than using the closed-form logarithm formula, gives the same answer a statement would.
FAQ
Why does the minimum payment take so long?
Card minimums are typically 1% to 2% of the balance plus interest, and they shrink as the balance falls, so the payoff stretches for years. Enter a fixed payment instead of the minimum; the difference is usually startling.
Does it matter when in the month I pay?
For cards it can: interest accrues daily, so paying earlier in the cycle reduces the average daily balance. This calculator uses monthly interest, which is what installment loans charge and a close approximation for cards.
Should I pay extra on this loan or invest?
Paying down a loan is a guaranteed return equal to its rate. Above about 7% it's hard to beat reliably; below 4% many people prefer to invest, keep an emergency fund, or overpay a higher-rate debt first.
Can I use this for a mortgage?
Yes, but the amortization schedule calculator shows the year-by-year picture. This one is best for cards, car loans and personal loans where the question is simply how many months are left.