Extra Payment Loan Payoff Calculator

Paying off any loan early

This calculator works for any fixed-payment, amortizing loan — auto loans, personal loans, student loans, or a mortgage. On these loans, each payment is split between interest on the current balance and principal that reduces it. Anything you pay above the scheduled amount is applied entirely to principal, so it permanently lowers the balance that interest is charged on. Less interest accrues from then on, which is how extra payments both shorten the loan and cut total interest.

A key point about what changes: on most fixed loans, extra principal shortens the term while your scheduled monthly payment stays the same — you simply reach a zero balance sooner. The payment does not drop. The exception is recasting (re-amortization), which some mortgage servicers offer for a fee: after a large lump sum, the lender recalculates a lower payment over the original remaining term. This tool models the standard case — same payment, shorter term, less interest — and builds the complete month-by-month amortization schedule so you can see exactly how the balance falls.

Before committing extra money, check your loan agreement for a prepayment penalty — a fee some lenders charge for paying off early to recover expected interest. Many loans have none, but it is worth confirming so a fee does not offset your savings. The headline figures above show the new payoff date and the interest you save. As a rule, the higher your loan’s rate, the more an extra payment is worth, since prepaying earns a guaranteed return equal to that rate.