Loan Payoff Calculator
See how quickly you can pay off your loan and how much you save with extra payments.
Payoff Time
4y 9m
Total Interest
$3,460
| Year | Principal Paid | Interest Paid | Remaining |
|---|---|---|---|
| Year 1 | $4,743 | $1,257 | $20,257 |
| Year 2 | $5,011 | $989 | $15,246 |
| Year 3 | $5,294 | $706 | $9,952 |
| Year 4 | $5,592 | $408 | $4,360 |
| Year 5 | $4,360 | $100 | $0 |
Frequently Asked Questions
How much can I save with extra loan payments?
Extra payments can save thousands in interest and shave years off your loan. Even an extra $100/month on a $25,000 loan at 5.5% can save over $2,000 in interest and pay off the loan 2+ years early.
Should I pay off my loan early or invest?
Compare your loan interest rate to potential investment returns. If your loan rate is higher than expected investment returns after taxes, pay off the loan first. Otherwise, investing may build more wealth long-term.
What is the debt avalanche method?
The debt avalanche method involves paying minimum payments on all debts while putting extra money toward the highest-interest debt first. This minimizes total interest paid and is mathematically the most efficient repayment strategy.
Does paying extra go to principal or interest?
Extra payments typically go directly to principal, reducing your loan balance faster. This means less interest accrues in future months, accelerating your payoff timeline. Always confirm with your lender that extra payments are applied to principal.