Loan payoff calculator

A fixed loan payment uses the standard amortization formula: payment = P × r ÷ (1 − (1 + r)⁻ⁿ), where P is the amount borrowed, r is the monthly interest rate (the APR ÷ 12), and n is the number of monthly payments. Early on, most of each payment is interest; as the balance falls, more goes to principal. This calculator runs that math and shows the total interest you’ll pay.

A lot, because every extra dollar comes straight off the principal and stops accruing interest for the rest of the term. Adding even $50–$100 a month can cut months — sometimes years — off the loan and save hundreds or thousands in interest. Enter an extra amount above to see your own numbers; the saving is biggest on high-rate loans.

It’s a trade-off. A longer term lowers the monthly payment but raises the total interest sharply — you pay for the lower payment in time and dollars. Take the shortest term whose payment you can comfortably afford, and if a longer term is the only way to fit the budget, plan to make extra payments when you can.

It depends entirely on your credit. Strong files can see rates under 10% from banks and the best online lenders; weaker credit climbs toward the 30%+ range at subprime lenders. If your loan is for consolidating higher-rate debt, the rate only helps if it’s lower than what you’re clearing — compare lenders on our best debt-consolidation loans ranking.