Loan Payoff Calculator
Every extra dollar goes straight at principal. See exactly how many months and how much interest a little extra each month removes.
Remaining balance by year
A fixed loan payment is mostly interest at first, because interest accrues on the whole remaining balance. Anything you pay above the scheduled amount skips the interest line entirely and reduces principal, which shrinks every future month's interest and snowballs the payoff forward. That's why modest extra payments have outsized effects on long loans.
Frequently asked questions
Is paying the loan early better than investing the extra money?
Paying a loan at rate r is a guaranteed, risk-free r% return. If your loan is 7%, prepaying beats any guaranteed alternative; if it's 3%, investing likely wins over long horizons. Many people split the difference for the guaranteed-progress feeling.
Do extra payments change my required monthly payment?
No, on a standard amortizing loan, prepayments shorten the loan but the scheduled payment stays the same. (Recasting, which lowers the payment instead, is a separate bank process.)
Are there prepayment penalties?
Most US mortgages written after 2014 can be prepaid freely, but some auto, personal, and older loans have penalties, check your note. Also tell your servicer to apply extra amounts to principal, not to next month's payment.
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Calculators model hypothetical outcomes from the inputs you provide. They are informational only, not financial, investment, tax, or legal advice.