Loan Payoff Calculator
It's the question everybody asks before throwing extra at a loan: is it actually worth it? Drop in any loan and get your answer — in real interest saved and a sooner debt-free date.
Interest saved with the extra payment
$1,142
Paid off sooner by
1 yr 3 mo
Current plan — $375.00/mo
Debt-free July 2031 (5 years) · $4,398 total interest
With +$100/mo — $475.00/mo
Debt-free April 2030 (3 yr 9 mo) · $3,256 total interest
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How this is calculated
The calculator runs your loan month by month twice — once at your current payment, once with the extra amount — and compares. Each month, interest = balance × (APR ÷ 12); whatever your payment covers beyond that interest reduces the balance.
Extra payments punch above their weight because 100% of the extra goes to principal — shrinking the balance that every future month's interest is computed on. The savings compound in reverse.
If your payment doesn't exceed the monthly interest, the balance can never fall — the calculator flags that trap explicitly.
Common questions
Should I pay off debt or invest the extra money?
The math compares the loan's interest rate to your expected investment return. High-rate debt (credit cards, anything over ~8%) is usually the guaranteed win; low-rate debt (a 3% mortgage) often loses to investing. Behavior matters too — a paid-off loan is a return you can't un-earn.
Do extra payments automatically go to principal?
Not always — some lenders apply extras to the next month's payment instead. When you send extra, mark it 'apply to principal' and verify on the next statement. It changes everything about the math.
Is there ever a prepayment penalty?
Rare for most consumer loans, but some mortgages and auto loans include one — check your agreement. Even where one exists, it's often smaller than the interest saved.
Go deeper
Debt demolition — the exact payoff order that ends it fastest
This math is taught step-by-step in Module 3 of the Bear Bankroll Wealth System — with interactive worksheets that run the numbers on YOUR situation.
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Educational tool only — estimates, not financial advice. Your numbers stay in your browser and are never sent to our servers.