CLEARBORROW · TOOL · PUBLISHED NOVEMBER 12, 2026
Loan payoff calculator: pay off early and save
Enter your balance, APR and monthly payment, then add an extra amount to see how many months and how much interest you save. Example (our arithmetic): $5,000 at 22% paid at $150 a month takes 52 months and about $2,798 in interest; paying $250 cuts it to 26 months and about $1,286 — roughly $1,512 saved.
On this page
Calculate your payoff
Assumes a fixed rate, interest charged monthly, no new borrowing and no fees. Check with your lender that there is no prepayment penalty and that extra money goes to principal.
Worked example
| $5,000 at 22% APR | Months | Interest | Total paid |
|---|---|---|---|
| $150 a month | 52 | $2,798.05 | $7,798.05 |
| $250 a month | 26 | $1,285.72 | $6,285.72 |
Our arithmetic, monthly compounding, no fees.
Before you pay extra
- Check the loan has no prepayment penalty.
- Ask the lender to apply extra money to principal, not to next month’s payment.
- Keep a small emergency fund so you do not need to borrow again.
- Pay the highest-APR debt first if you have several.
Credit cards
If your payment is lower than the monthly interest, the balance never falls — the calculator shows “Payment too low”. See how paying down cards also helps your score.
Questions
Does paying extra lower my monthly payment?
On most installment loans, no — it shortens the term. Some lenders re-amortize on request.
Is it better to pay extra or save?
It depends on your rate and whether you have savings for emergencies. High-APR debt is usually worth paying down first.
Why does my lender’s payoff figure differ?
Lenders may use daily interest and exact dates; this calculator uses monthly periods.
Sources and limits
Sources checked November 12, 2026. Calculators give estimates, not offers; lenders calculate exact payments, APRs and approval. This is general information, not financial or legal advice. How we use sources.