Accelerated Payoff Calculator
Calculate how quickly you can pay off your loan with accelerated payments. See how extra payments affect payoff time and total interest saved.
Step 1: Loan Details
Accelerated Payoff Formula
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n – 1]
Where P = principal, r = monthly interest rate, n = number of payments
Step 2: Accelerated Payments
Acceleration Benefits
Extra payments reduce principal faster, decreasing total interest paid and shortening loan term. Even small extra payments can save thousands in interest.
Accelerated Payoff Results
Accelerated Payoff Achieved In
Payment Strategy Comparison
| Payment Strategy | Payoff Time | Total Interest | Monthly Payment |
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Accelerated Payoff Formula
Loan Payment 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)
Accelerated payoff recalculates remaining balance after extra payments are applied to principal.
Example Calculation
Example: $25,000 loan at 5.5% for 5 years
Original monthly payment: $477.42
Total interest paid: $3,645.20
With $100 extra monthly payment:
New payoff time: 3.8 years
Total interest paid: $805.20
Interest saved: $2,840.00
Time saved: 1.2 years
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