Decision instrument
Loan Payoff Calculator
Compare required and accelerated payoff plans for a single loan.
Your inputs
Adjust the fields and review the result in this workbench.
Interpretation
How Loan Payoff Planning works
The calculator compares the required payment by itself with a plan that adds the extra monthly payment and one immediate lump sum. It applies interest monthly to the remaining balance, then applies the payment to interest and principal.
Example
Key features
A realistic example to show how this tool can support an actual decision.
Formula
Monthly interest = remaining balance × annual rate ÷ 12. Principal paid = payment − monthly interest.
- Compare required and accelerated payoff plans
- Model a recurring extra payment and one immediate lump sum
- Inspect an amortization schedule and download it as CSV
- See when a stated payment does not reduce the balance in this model
Avoid mistakes
Common mistakes
A few things that can lead to misleading results or poor decisions.
Check whether a faster payment survives an ordinary month. Confirm your lender's prepayment rules, fees, and payment application before sending extra principal.
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