When will my loan be paid off?
Each month, interest is added to your balance, and your payment covers that interest first. Whatever is left lowers what you owe. As the balance shrinks, less goes to interest and more goes to the loan.
Why a little extra helps so much
Every extra dollar goes straight to the balance, so next month's interest is smaller too. That's why a small extra payment can take months or years off a loan.
A worked example
Say you owe $12,000 at 8.5% and pay $350 a month.
- You'd be paid off in 40 months and pay about $1,800 in interest.
- Add $100 a month and you'd finish in 30 months, 10 months sooner, saving about $450 in interest.
If the payment doesn't cover the interest
When your payment is equal to or less than the monthly interest, the balance never goes down. The calculator tells you kindly and shows a payment that would clear it in about five years.
How this loan payoff calculator works
It assumes a fixed rate, the same payment every month and your first payment next month. It works for car loans, personal loans and student loans. Credit cards can change rates and minimums, so the result is an estimate. Check with your lender for an exact payoff amount, and make sure extra payments go to the principal.
Ways to pay a loan off faster
- Round your payment up to the next $50 or $100.
- Put part of a tax refund or bonus toward the balance.
- Ask if you can refinance at a lower rate.
Juggling several debts? The debt payoff calculator compares the snowball and avalanche methods.
Questions people ask
Can I use this for a car loan or student loan?
Yes. Enter the current balance, your rate and what you pay each month. It works for any fixed-rate loan with a steady payment.
Why does it say my loan won't be paid off?
Your payment isn't more than the interest added each month, so the balance can't go down. Paying a little more fixes it, and the calculator suggests an amount.
Is there a penalty for paying early?
Most car, personal and student loans don't have one, but some do. Check your loan terms or ask your lender.
Are my numbers saved?
Yes. Everything you type saves automatically in this browser, so it’s here next time, and nothing is sent anywhere. Private windows and clearing your browsing data don’t keep it, so tap Save or print: Save a copy downloads a small file you can open later, or on another device, with Open a saved copy, and Print / Save as PDF gives you a copy to keep.