Loan payoff calculator
Add an extra amount each month and see how much sooner the loan is paid off and how much interest you keep.
Amortization schedule
| Year | Principal | Interest | Extra | Balance |
|---|---|---|---|---|
| 1 | $4,366.71 | $1,573.65 | $1,200.00 | $19,433.29 |
| 2 | $4,769.13 | $1,171.23 | $1,200.00 | $13,464.16 |
| 3 | $5,200.63 | $739.73 | $1,200.00 | $7,063.53 |
| 4 | $5,663.34 | $277.02 | $1,200.00 | $200.19 |
| 5 | $200.19 | $1.17 | $0.00 | $0.00 |
A simple payoff plan
List your loans by interest rate, pay the minimum on all of them and put every spare dollar toward the highest rate first. When it is paid off, roll its payment into the next. This avalanche method minimizes interest; the snowball method, which targets the smallest balance first, costs a little more but can keep you motivated.
How much extra helps
On $25,000 at 7% over 5 years, an extra $100 a month saves $939 in interest and finishes the loan 11 months early.
| Extra / month | Months saved | Interest saved |
|---|---|---|
| $0 | 0 | $0 |
| $50 | 6 | $523 |
| $100 | 11 | $939 |
| $200 | 19 | $1,560 |
| $400 | 29 | $2,333 |
Frequently asked questions
Do extra payments always reduce the loan term?
If your lender applies them to principal, yes. Some lenders treat extra money as an early payment of the next installment instead, so tell them to apply it to principal.
Is there a prepayment penalty?
Most auto loans and mortgages today have none, but some do, so check your loan agreement.
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Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.