Loan Payoff Time Calculator
Enter a balance, an interest rate and a monthly payment to see when you will be debt-free.
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Loan Payoff Time Calculator by TheCalcTools
How the Loan Payoff Time Calculator works
Enter the current balance, the annual interest rate and the amount you pay each month.
Each month interest is added to the balance, then your payment is subtracted.
The calculator solves for the number of payments with the annuity formula.
The formula
Worked example
Using the default values shown in the calculator:
| Balance | $10000 |
|---|---|
| Interest rate (APR %) | 12 % |
| Monthly payment | $300 |
- Monthly rate = 12% ÷ 12 = 1%.
- n = −ln(1 − 10,000 × 0.01 ÷ 300) ÷ ln(1.01) = 40.7 months (3.40 years).
- Interest paid ≈ $2,225.
Result:
| Months to pay off | 40.7 |
|---|---|
| Years | 3.40 |
| Total interest (approx.) | $2,225 |
| Total paid (approx.) | $12,225 |
Frequently asked questions
Why does the calculator say the payment is not enough?
If the payment is no larger than the first month’s interest, the balance never falls. Increase the payment.
Are the totals exact?
They are close approximations. The last payment is usually smaller than the others, which the fractional month reflects.
Sources and further reading
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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.