Free Loan Payoff Calculator

How does this loan payoff calculator work?

This loan payoff calculator works by dividing your loan amount by your repayment, leaving you with an estimate of how many years and months it will take to fully repay the debt. The higher your repayment is relative to the loan amount, the quicker you will repay the loan.

The loan balance chart graphs the difference in the time it takes to pay back just your principal vs the time it takes to pay back principal and interest. The higher your repayment frequency, the less differentiation you will see in the chart.

After you enter your details, your results will display an estimate of your loan term, as well as an estimate of your total interest payable and total repayments. You can experiment with different repayment amounts and frequencies to see how they impact the loan term estimate.

How accurate is this calculator?

This loan payoff calculator is designed to give you an estimate of how long it will take to pay off your loan based on your loan amount, interest rate, repayment, and repayment frequency. The calculator works on a series of assumptions, including:

Upfront or ongoing fees and charges are not taken into account.
The interest rate remains the same over the life of the loan.
Interest is calculated by compounding the same repayment frequency, which may not be true in practice.
A year consists of 26 fortnights, 52 weeks, and is counted as 364 days.
No rounding takes place during calculation, while repayments are rounded to the nearest cent in practice.

Because of how much variance there is in how different lenders calculate loan terms, a calculator can't give you a precise answer on how long it will take to pay off your loan. Therefore, this calculator should only be used to give you an indication of how paying different amounts at different frequencies impacts your loan term.

How long will it take to pay off my mortgage?

When you make loan repayments, you pay back the principal (loan amount) along with interest. Interest grows over time, so the sooner you pay back the principal, the less you will end up paying in out-of-pocket in interest.

You can use the loan payoff calculator on this page to estimate how long your loan term will be based on how much you're borrowing, the interest rate, and what your repayments will look like/how often they will be paid. Keep in mind; the result you get from the calculator is only an estimate, and your true loan term may vary depending on which lender you're borrowing from.

Frequently Asked Questions

How can I pay off my home loan faster?

You can pay off your home loan faster (and pay less in interest) by increasing your monthly payment or increasing your repayment frequency. Both methods will help to reduce your principal and, in turn, reduce the total interest payable on your loan.

Of course, eliminating other expenses like credit card debt or finding a way to bring in extra income will make it easier for you to pay off your mortgage in less time. Some people can pay off their mortgage in under five years by making extra repayments, using a bank offset account, and various other tactics.

How do you calculate loan payoff amount?

Your loan payoff amount is how much money you have left to pay the lender. For example, if you still owe another five $1000 repayments, your loan payoff amount would be $5000. If you repay that amount in one transaction, you can save money otherwise spent on interest accrued against the declining balance.

Is it cheaper to pay off a loan early?

It's almost always cheaper to pay off a loan early since you will pay more in interest fees for every day you remain in debt. The way that interest is compounded motivates borrowers to repay the money as quickly as possible to reduce the cost of the loan. Some lenders may charge a fee for closing your account early, so make sure you know the total amount this will cost you.

How do I calculate paying off my mortgage early?

Use the loan payoff calculator to see how adjusting your monthly payment will help you pay down your loan balance quicker. Adjust the repayment amount and repayment frequency values to see how making extra/more frequent repayments will shorten the life of your loan and save you money.