Use this Loan Payoff Calculator to find out how long it will take to become debt-free based on your loan amount, interest rate, and monthly payments.
If you’re paying off a car loan, personal loan, or credit card, understanding how long it will take and how much interest you’ll pay helps you stay in control. This calculator shows the exact months and years needed to clear your balance with your current monthly payment.
Just enter:
- Your total loan amount
- Annual interest rate (APR)
- The monthly payment you’re making
You’ll instantly see how long until you’re debt-free, and how much interest you’ll pay along the way. You can test different payment strategies to shorten your payoff time and save on interest.
Loan Payoff Calculator
Key Terms Explained
| Term | Meaning |
|---|---|
| Loan Amount | The total remaining balance you owe on a loan. |
| Annual Interest Rate (APR) | The percentage charged each year for borrowing the money. |
| Monthly Payment | The fixed amount you pay toward the loan each month. |
| Time to Pay Off | The total time (in years and months) it will take to fully repay the loan. |
| Total Interest Paid | The total amount you’ll pay in interest over the full life of the loan. |
| Debt Repayment Strategy | A plan for how you’ll pay down loans, including payment size and schedule. |
| Amortization | The process of spreading loan payments over time, including interest and principal. |
What is a Loan Payoff Calculator?
A Loan Payoff Calculator shows how long it will take to repay a loan and how much interest you’ll pay, based on your balance, interest rate, and monthly payment.
It works by simulating monthly loan payments and tracking how each payment splits between interest and principal. The calculator continues this loop until the loan balance reaches zero — giving you an accurate time-to-payoff and the total interest you’ll pay.
This tool is especially useful for:
- Personal loans
- Car loans
- Credit card balances
- Debt planning goals (e.g. “Debt-Free by 2027”)
It can also help you:
- Visualise the benefit of larger payments
- Compare payoff timelines for different interest rates
- Decide whether to refinance or consolidate
How the Loan Payoff Calculator Works
This calculator shows how long it will take to pay off your loan using your current monthly payment, including how much interest you’ll pay.
It works by simulating each month’s interest and principal:
- Interest is calculated based on your current balance
- The rest of your payment goes toward reducing the loan
- It repeats this process monthly until the loan is paid off
If your monthly payment is too low to cover even the interest, the calculator will show “Never” — meaning the loan can’t be repaid at that rate.
How to Pay Off Loans Faster
Use these 3 strategies to shorten your payoff time and reduce interest:
- Increase your monthly payment – even small bumps save years
- Make biweekly payments – this adds 1 extra payment per year
- Apply lump sums – tax refunds or bonuses can cut your timeline fast
Try different values in the calculator to see how extra payments reduce your debt duration.
Frequently Asked Questions
1. How does a loan payoff calculator work?
A loan payoff calculator uses your loan balance, interest rate, and monthly payment to calculate how long it will take to fully repay your loan and how much total interest you’ll pay.
2. Can I pay off a loan faster with extra payments?
Yes. Making extra payments, even small ones, reduces your principal faster, which shortens your loan term and lowers the total interest paid.
3. What happens if my monthly payment is too low?
If your payment doesn’t cover the monthly interest, the loan may never be repaid. The calculator will display “Never” if your payment is too low to reduce the balance.
4. Is this calculator good for car loans or credit cards?
Yes. This tool works for any fixed-payment loan: car loans, personal loans, credit card balances, and even student debt.
5. What’s the best strategy to pay off a loan faster?
The top strategies are increasing monthly payments, switching to biweekly payments, and applying lump sums when possible.
6. How much interest will I pay over the life of a loan?
It depends on your interest rate, balance, and how quickly you repay it. The calculator shows your exact total interest based on your inputs.