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Loan Payoff Calculator

How much do extra payments really save? Enter your loan and an optional extra monthly payment to see the interest saved and how much sooner you'd be debt-free.

$
%
yr
$
You save with extra payments
$97,618
less interest, and you're debt-free 7 yr 11 mo sooner
Interest without extra
$318,861
Interest with extra
$221,243
Monthly payment$1,580.17
Total interest (no extra)$318,861
Total repaid (no extra)$568,861
New payoff time22 yr 1 mo
Interest saved$97,618
Time saved7 yr 11 mo

Standard equal-instalment (amortising) loan, computed month by month. Some lenders charge a prepayment penalty - check your agreement and subtract it from the interest saved. If your loan rate is above your expected investment return, paying it down usually wins.

RELATED GUIDERenting vs buying a home: the complete guideThe break-even, the hidden costs of owning, and the opportunity cost of a down payment.

Frequently asked

Should I pay off my loan early?

Usually yes if the loan rate is higher than the return you could earn by investing that money - the interest you avoid acts like a guaranteed, risk-free return. If the rate is low and your expected investment return is higher, investing may win. This calculator shows exactly how much interest and time extra payments save.

How do extra payments reduce interest?

Each monthly payment is split between interest and principal. An extra payment goes straight to principal; as the balance falls, the interest charged in every following month falls too. That is why even small extra payments made early cut the total interest a lot and shorten the term.

Are there early payoff penalties?

Some lenders charge a prepayment penalty, especially on mortgages and auto loans in the first few years. Always check your loan agreement - if a penalty applies, subtract it from the interest saved shown here to get your true benefit.

How is the monthly payment calculated?

For a standard equal-instalment (amortising) loan, payment = Amount × monthly rate ÷ (1 − (1 + monthly rate)^−months), where monthly rate = annual rate ÷ 12. This tool computes that, then amortises the balance month by month to get the exact total interest - not an approximation.

Should I pay off debt or invest?

Compare your loan rate to your expected (real) investment return. If the loan rate is higher, paying it down is a guaranteed win. If your expected return is clearly higher and you can handle the risk, investing may come out ahead. Alvest's real-return and debt tools make this decision concrete.

Does Alvest track my debt?

Yes. Alvest folds your loans and credit-card balances into your real net worth, and shows payoff time, total interest and early-payoff opportunities alongside your assets. You can start free.