Loan Payoff Calculator
Calculate how much time and interest you can save by paying extra on a fixed-rate loan. Works for mortgages, auto loans, student loans, and personal loans.
The power of principal: how extra payments change the math
On a standard fixed-rate loan, like a mortgage or an auto loan, your monthly payment is calculated to pay off the debt over a specific number of years. In the early years of the loan, a large portion of every dollar goes toward interest. Only a small amount goes toward the principal balance.
When you make an extra payment, that money is typically applied entirely to the principal. This reduces the balance faster, which in turn reduces the amount of interest that can accrue the following month. Over time, this compounding effect can save thousands of dollars and shave years off your debt timeline.
Common loan payoff strategies
Financial experts often suggest a few ways to accelerate debt payoff. One is the "bi-weekly" method, where you pay half your monthly amount every two weeks, resulting in one extra full payment per year. Another is simply rounding up your payment to the nearest hundred dollars. This calculator lets you test any amount to see the immediate impact on your specific loan.