Personal Loan Payoff Calculator

Personal loans are fixed-rate installment loans, usually two to seven years, with rates that range from single digits for excellent credit to over 30% for poor credit. Interest accrues monthly on the remaining balance, so extra payments early in the term save the most. A $12,000 loan at 14.5% with a $415 payment runs about 36 months and costs roughly $2,900 in interest; $100 more a month saves about $700 and eight months.

This calculator shows your payoff date and total interest, then the effect of adding $50 to $500 a month. Most personal loans have no prepayment penalty, but some charge one in the first year or two, so check your agreement. If your rate is high, it also checks whether a lower-rate consolidation loan would cost less.

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Debt-free January 2029

In 2 years 4 months, paying $2,179 in interest.

Debt-free dateJanuary 2029
Months28
Total interest$2,179
Monthly outlay$515

At minimum payments only, these debts take 3 years and cost $2,853 in interest. With $100 extra a month you are debt-free in 2 years 4 months after $2,179 in interest.

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Frequently asked questions

Can I pay off a personal loan early?

Almost always, and most lenders charge no penalty. A minority charge a prepayment fee, typically 1% to 2% of the balance or a few months of interest, usually only within the first year. Check your loan agreement; if there is a fee, the calculator's interest saving needs to exceed it for early payoff to make sense.

Does paying extra on a personal loan lower the monthly payment?

No, it shortens the term. Your scheduled payment stays the same and the loan ends sooner, which is where the interest saving comes from. If you want a lower payment instead, you would need to refinance, which resets the term and can cost more overall even at a lower rate.

Should I refinance a high-rate personal loan?

If your credit has improved since you took it out, or rates have fallen, a new loan at a lower APR can save real money, but only if the new fee and any longer term do not eat the saving. Use the consolidation calculator with your current loan as the debt to see the break-even APR.

Is a personal loan better than credit card debt?

Usually, because rates are lower and the fixed term forces payoff. That is the logic of consolidation. But a personal loan at 25% is no better than a card at 25%, and it can be worse if the term is long. Compare total cost at the same monthly payment, not just the rate.

How is personal loan interest calculated?

Monthly, on the remaining balance, at APR divided by twelve. Each payment covers that month's interest first and the rest reduces principal, so the interest portion shrinks over time. This calculator applies exactly that schedule, which matches lender statements to within a dollar or two.