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Loan Payoff Calculator

Enter your loan and the extra payments you plan to make.

Your Loan Details

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yrs
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Monthly Payment

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Loan Amount
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Total Payment
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Total Interest
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Compare: With vs Without Extra Payments

See exactly what extra payments do for your loan.

Without Extra Payments

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  • Payoff time: —
  • Total interest: —
  • Total paid: —

With Extra Payments

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  • Payoff time: —
  • Total interest: —
  • Total paid: —
Interest by Year: Standard vs With Extras
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Amortization Schedule

Your payment plan with extra payments applied.

Month Payment Principal Interest Extra Balance

Loan Payoff Calculator FAQ

How do extra payments reduce my loan term?▶
Every extra dollar you pay reduces your principal directly. With a smaller principal, less interest accrues each month, so more of your regular payment goes to principal — creating a snowball effect that clears the loan sooner.
Are extra payments always worth it?▶
Usually yes, because you save interest. But if you have higher-interest debts or a small emergency fund, pay those off or build savings first. Some loans also charge prepayment penalties, so check your loan agreement.
What is the best time to make a one-time payment?▶
Earlier is better — the sooner you reduce the principal, the more future interest you avoid. Making it in the first few months of the loan has the biggest impact.
Goal: Become debt-free faster
Extra payment: Cuts interest & term
Snowball: Pay smallest debts first
Avalanche: Pay highest rate first

On this page

  1. Debt snowball vs debt avalanche
  2. How much faster do you finish?
  3. How to use this calculator
  4. Frequently asked questions

Loan Payoff Calculator — a clear plan to be debt-free

Drowning in loans? This calculator shows how adding extra to your monthly payment shortens your loan term and reduces total interest — and how long you'll be debt-free with the debt snowball or avalanche strategy.

Debt snowball vs debt avalanche

Snowball: pay off the smallest balance first, then roll that payment to the next. Psychologically motivating — quick wins build momentum.

Avalanche: pay off the highest interest rate first. Mathematically optimal — saves the most interest overall.

Avalanche saves more money; snowball keeps you consistent. Choose what you'll actually stick with.

How much faster do you finish?

A $5,00,000 loan at 12% for 5 years with a $1,000 extra payment finishes 6 months early and saves about $30,000 in interest.

Doubling the minimum payment can cut the term roughly in half.

Every $100 of extra payment in the first year is worth closer to $250 of savings over the loan life.

How to use this calculator

  1. Enter your current balance and interest rate.
  2. Input your current monthly minimum payment.
  3. Optionally add an extra monthly payment.
  4. Read the new payoff date, term reduction and interest saved.

Pro tips

  • Direct extra payments to principal only.
  • Fund 1–2 months of 'buffer' before aggressive prepayment to avoid reborrowing.
  • Never pay extra on a loan at 0% interest when you have high-rate debt elsewhere.

Frequently asked questions

Should I invest or pay off debt?▶
Generally, pay off debt above 8–9% interest before investing in low-return assets. If your debt is below 5% (home loan) and equity returns higher, investing may win — but the risk-free 'return' of paying debt is guaranteed.
What is debt consolidation?▶
Combining multiple high-rate loans into one loan at a lower rate. Useful if the new rate is meaningfully lower and you don't run up the old cards again.

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