Loan Payoff Calculator
How much sooner you'll be done, and how much interest you'll keep, if you pay a little extra each month, drop in a lump sum, or pick a debt-free date and work backwards.
How the balance falls
Amortization schedule
| Year | Paid | Interest | Principal | Balance |
|---|---|---|---|---|
| Year 1 | $7,063.06 | $1,213.20 | $5,849.86 | $12,150.14 |
| Year 2 | $7,063.06 | $733.95 | $6,329.11 | $5,821.03 |
| Year 3 | $6,039.34 | $218.31 | $5,821.03 | $0.00 |
Explain my numbers in plain English
Sends only the numbers shown above (and your question) to an AI model via Vercel AI Gateway. Nothing is stored. It's a plain-language read, not financial advice.
Why extra payments punch above their weight
An extra dollar paid today doesn't just remove a dollar of debt. It removes every month of interest that dollar would have generated until the end of the loan. That's why the same $100 extra saves far more in year one of a 30-year mortgage than in year twenty-five.
Before you prepay, check your loan agreement for a prepayment penalty (rare on car and personal loans, restricted on most US mortgages), and make sure higher-rate debt like credit cards is dealt with first. The debt payoff calculator helps you order several debts.
Questions people ask
How much faster will extra payments pay off my loan?
It depends on the rate and how early you start, but extra principal early in a loan has a big effect because it stops interest from building on that money for all the remaining months. Enter an amount above to see your exact payoff date and interest saved.
How much extra do I need to pay to be debt-free by a certain date?
Switch to "Pay off by a target date" and enter the number of months. The calculator solves for the monthly payment that reaches zero exactly then.
Is it better to pay extra on my loan or invest?
Paying extra earns a guaranteed return equal to your loan’s interest rate. Compare that with the after-tax return you expect from investing, and keep an emergency fund first.
Will my lender apply extra money to principal?
Usually, but not always automatically. Many servicers apply extra funds to future payments unless you mark them "principal only". Check your statement after the first extra payment.
Can I use this as a mortgage payoff calculator?
Yes. Enter your current mortgage balance, rate and remaining months. Leave out taxes and insurance; only principal and interest matter for payoff.