Loan Payoff Calculator
Find when a loan will be paid off at your payment, the interest it costs and what extra payments save.
Change the values and press Calculate to work out your own figures.
Enter the balance, payment and rate.
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $167.04 | $2,832.96 | $2,167.04 |
| 2 | $40.21 | $2,167.04 | $0.00 |
Show the working
- each month: interest = balance × rate ÷ 12 (to the cent); the rest of the payment reduces the balance
How to use it
Enter the balance, payment and rate.
Enter amounts without commas or with them; rates are percentages (5 for 5%). Negative amounts are allowed where a sign means money paid out.
Key facts
each month: interest = balance × rate ÷ 12; the rest reduces the balance
Questions
How long to pay off $20,000 at 6% paying $400 a month?
4 years 10 months.
Formulas
each month: interest = balance × rate ÷ 12; the rest reduces the balance
Sources
Limitations
- Results are estimates for planning, not offers or financial advice; lenders and banks may round, count days or time payments differently.
- Rates are nominal annual rates compounded as you choose; payments at a different frequency use the equivalent periodic rate.