To use the Loan Payoff Calculator, enter your loan amount, term, and interest rate. You can also add extra monthly payments or a one-time payment to see how these affect your loan payoff time and interest savings. Select your start date and whether you want a fixed total amount towards monthly payments.
The calculator uses the formula for loan amortization: PMT = P * r / (1 - (1 + r)^-n), where P is the principal, r is the monthly interest rate, and n is the number of payments.
For a $10,000 loan at 5% interest over 3 years, the monthly payment is approximately $299.71. Adding an extra $50 monthly payment reduces the term to 32 months, saving $150 in interest.
Ensure you understand any prepayment penalties your lender may impose. Regularly review your financial situation to adjust your payment strategy as needed. For more tools, check out our Mortgage Calculator and Debt Payoff Calculator.