Payoff Calculator
Free loan payoff calculator. See months and interest saved from extra monthly payments or a lump sum, or solve the required payment to hit a target payoff date. Full amortization and Excel export.
Frequently asked questions
How much can I save by making extra payments on my loan?
Every extra dollar goes directly to principal, which shrinks the balance interest is charged against for every remaining month. On a typical 30-year mortgage at 6.5%, an extra $200/month can save 6–8 years and $80,000–$120,000 in interest depending on balance. This calculator shows the exact months and interest saved for your specific loan.
Is it better to make an extra monthly payment or a lump sum?
A lump sum applied today is generally more valuable per dollar than the same amount spread over months, because it reduces principal before any additional interest accrues. But recurring extras compound: a $200 monthly extra over 20 years outperforms a single $40k lump sum on most amortizing loans. Model both in this calculator to see the split that works best for your cash flow.
How do I calculate the monthly payment to pay off my loan in X years?
Use the standard amortizing-loan formula: M = P·r·(1+r)ⁿ / ((1+r)ⁿ − 1), where P is your current balance, r is the monthly rate, and n is your target months. Switch this calculator to "Target Term → Required Payment" mode and it solves M directly, plus tells you the extra needed beyond your current payment.
Are there downsides to paying off a loan early?
Three to check: (1) some loans have prepayment penalties in the first 2–5 years — read your note. (2) Cash paid to principal is illiquid; you generally cannot pull it back without a refinance or HELOC. (3) If your loan rate is below expected after-tax investment returns, investing the extra may build more net worth over the long run. This calculator quantifies the interest savings side of that trade-off.
What does "biweekly payments" do?
A true biweekly schedule sends half your monthly payment every two weeks. Because there are 26 biweekly periods per year, you end up making 13 monthly-equivalent payments annually instead of 12 — one full extra payment per year. To replicate this in the calculator, add (monthly payment ÷ 12) as your extra monthly amount.
Why does the calculator flag "payment does not cover interest"?
If your monthly payment is less than balance × (rate ÷ 12), interest accrues faster than you pay it down — the loan negatively amortizes and the balance grows. No positive payoff schedule exists. Raise the payment above the interest-only floor shown in the calculator to get a valid schedule.