Loan Payoff Calculator
Find how long it takes to clear a loan, or the monthly payment needed to pay it off by a target date — and see how extra repayments cut both time and interest.
Two ways to plan a loan payoff
This calculator works in two directions. In ‘how long to pay off’ mode, you enter your balance, rate and monthly payment and it tells you when the loan clears and how much interest you’ll pay. In ‘what must I pay monthly’ mode, you work backwards from a target date to the payment required.
Adding even a small extra amount each month shortens the loan and cuts total interest, because more of every payment goes to principal. If a payment doesn’t cover the monthly interest, the balance never falls — the calculator warns you when that happens.
The formula
Payoff time and payment come from the standard loan amortisation relationship between balance, monthly interest rate (annual rate ÷ 12) and payment. Interest each month = balance × monthly rate; the rest of the payment reduces the balance.
Worked example
| Item | Value |
|---|---|
| Balance owed | $10,000 |
| Annual rate (APR) | 12% |
| Monthly payment | $250 |
| Payoff time | ~50 months |
| Adding $50/month | Clears sooner and saves interest |
Frequently asked questions
How can I pay off my loan faster?
Pay more than the minimum each month. The extra goes straight to principal, which shortens the term and reduces the total interest you pay.
What happens if my payment is too low?
If your monthly payment is less than the monthly interest, the balance never reduces. The calculator flags this so you can raise the payment.
Does this include fees?
No. It models principal and interest. Any account or establishment fees should be considered separately.