Loan Payoff Calculator
Estimate the payment, interest, and timeline for a fixed-rate loan.
How this is calculated
Monthly payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1], where P is the loan balance, r is the monthly rate (annual rate ÷ 12), and n is the number of payments (years × 12). Total paid = payment × n, and total interest = total paid − P. At a 0% rate the payment is simply P ÷ n.
How the estimate works
This calculator uses the standard fixed-payment loan formula. It assumes one payment each month, a constant annual rate, and no fees, penalties, taxes, or extra payments. Your lender's amortization schedule can differ when those costs apply.
Worked example
A $20,000 loan at 6% annual interest over 5 years (60 months) has a monthly payment of about $387. The total repaid is about $23,200, so the interest costs roughly $3,200. Shortening the term to 3 years raises the payment to about $608 but cuts the total interest to roughly $1,900.
FAQ
- Can I use this for an auto loan?
- Yes. Enter the current balance, annual percentage rate, and remaining term. Check your contract for origination fees or payment schedules that are not represented here.
- How do extra payments change the result?
- Extra principal usually reduces interest and shortens the payoff period. This version shows the scheduled payment only, so compare it with your lender's payoff quote.