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
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
Time Saved with Extra Payments
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 |
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Amortization Schedule (First 12 Months)
| Month | Payment | Principal | Interest | Balance |
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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.
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