There are two ways to implement the loan payoff calculator:
- To determine the amount of time it will take to fully repay your loan given a certain monthly payment
- To figure out how much you’ll need to pay each month to finish repaying your loan in a certain amount of time.
Plug in the amount you owe, or the loan amount. For example, let’s say you have a $20,000 loan. Add in your annual percentage rate (APR). In this example, we’ll say it’s 10%.
If you’re using the first approach of calculating by loan term, you’ll also need to select the number of months of your term. From there, you can add in additional payments to see how much faster you can repay the loan. In this case, figure you’re putting an extra $200 toward your loan with a 60-month loan term.
You’d see your estimated monthly payment: $424.94.
And the amount of interest you’ll pay over time: $5,296.40.
If you decided instead to calculate based on your monthly payment, presuming the same loan amount and APR but a $500 monthly payment, the calculator would show that you’d pay off the loan in 49 months, or just over four years, and pay $4,500 in interest. Just make sure you don’t get hit with an early repayment penalty.
Our loan payoff calculator uses the loan amounts and interest rates you provide to figure out how much your monthly payments will be and when you will have fully repaid your debts.