Early Payoff Calculator — Calculate Loan Payoff Time & Interest Savings

Early Payoff Calculator

Calculate how quickly you can pay off your loan and how much interest you can save by making extra payments. Optimize your debt repayment strategy and achieve financial freedom sooner.

Step 1: Loan Details

5.5%
5 years

Understanding Loan Terms

Making extra payments, even small ones, can significantly reduce the total interest you pay and shorten your loan term. The earlier you start making extra payments, the greater the impact.

Step 2: Extra Payments

Maximizing Your Savings

Even small extra payments can have a big impact over time. For example, adding just $50 per month to a $25,000 loan at 5.5% can save thousands in interest and pay off the loan years earlier.

Payoff & Savings Results

Summary
Payment Comparison
Amortization

Time Saved with Extra Payments

11 months
Original: 5 years | New: 4 years 1 month
Original Total Interest
$3,866
New Total Interest
$3,120
Interest Savings
$746 SAVED
Monthly Payment
$478
Recommended Strategy

Based on your inputs, we recommend making a one-time extra payment of $100 now. This will reduce your total interest by $746 and shorten your loan term by 11 months.

Payment Strategy Comparison

Payment Strategy Total Interest Payoff Time Monthly Payment Interest Savings

Amortization Schedule (First 12 Months)

Month Payment Principal Interest Balance

Early Payoff Formula

Monthly Payment = P × [r(1+r)^n] / [(1+r)^n – 1]

Where P = principal loan amount, r = monthly interest rate (annual rate ÷ 12), n = total number of payments (loan term in years × 12). Extra payments reduce the principal balance faster, leading to less interest accrual over time.

Need Professional Debt Payoff Analysis?

Connect with our financial experts for detailed debt payoff strategies, loan restructuring advice, and personalized financial planning to achieve debt freedom faster.

Get Professional Analysis