Loan Payoff Calculator
See how making extra payments toward your loan principal can save you money in interest and help you become debt-free sooner. Reviewed for clarity and functionality. This tool has not been reviewed by a licensed financial professional.
Your Payoff Analysis
| Total Interest (Normal Payoff) | |
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| Total Interest (With Extra Payments) | |
| Total Paid (Normal) | |
| Total Paid (With Extra) |
How Extra Payments Work
When you pay extra toward your loan principal, you reduce the balance on which future interest is calculated. Each extra dollar goes 100% toward principal, accelerating your payoff and reducing total interest. Even small additional payments compound over time.
Worked Example
A $25,000 loan at 7.5% with a $500/month payment takes 61 months (5 years, 1 month) to pay off, with total interest of approximately $5,069. Adding $100 extra per month shortens payoff to 49 months (4 years, 1 month), saving approximately $1,018 in interest and 12 months of payments.