Loan Payoff Calculator
See how much time and money you can save by making extra payments on your loan. Enter your balance, rate, and current payment, then add an extra amount to see the difference in payoff time and total interest.
Extra payments are one of the most powerful tools for paying off debt faster. Every extra dollar goes directly toward principal, which reduces the balance that accrues interest in future months. The earlier you start making extra payments, the bigger the impact.
For example, a $25,000 loan at 6% with a $500 minimum payment takes 56 months to pay off, costing $3,968 in interest. Adding just $200 extra per month ($700 total) pays it off in 39 months -- saving 17 months and $1,486 in interest. That $200/month extra payment effectively earns you a guaranteed 6% return.
Even small extra payments add up. An extra $50/month on that same loan saves 7 months and $560 in interest. An extra $100 saves 12 months and $1,030. The key insight is that extra payments have a compounding effect: less principal means less interest, which means more of your next payment goes to principal, and the cycle accelerates.