Early Payoff Date Calculator

Early payoff date calculator for loans and credit balances

This early payoff date calculator estimates when your balance will reach zero based on your current balance, interest rate (APR), and monthly payment. It is useful for personal loans, credit cards, car loans, store accounts, and any other debt where interest is charged monthly and you pay a regular amount. If you add extra payments, the calculator also estimates how much interest you save and how many months faster you can finish.

The quickest way to use it is to enter three numbers: current balance, APR, and your monthly payment. You will immediately get an estimated payoff month and year (or a specific date if you enter a start date), plus the expected interest cost. If you are trying to pay off a credit card or loan early, add an extra monthly amount you can afford, or a one-time lump sum payment, and compare the results.

For most people the payoff question is not just “when does it end?” It is “what does this decision cost me?” Extra payments usually reduce interest dramatically because interest is calculated on your remaining balance. Paying earlier means the balance shrinks sooner, so each future month’s interest charge is smaller. This calculator makes that trade-off visible by showing an interest saved estimate compared to paying only the minimum planned monthly amount.

Assumptions and how to use this calculator

• Interest is modeled as monthly interest using APR ÷ 12, applied to the starting balance each month.
• Your monthly payment is assumed to be constant, and extra monthly payments are added on top of it.
• Optional one-time extra payment is applied immediately to reduce the balance before the monthly schedule starts.
• If you do not enter a first payment date, the calculator assumes the first payment happens this month and estimates months remaining.
• Real statements may differ due to fees, daily interest, payment timing within the month, or changing rates.

Common questions

Why does a small extra payment shorten the payoff time so much?

Interest is charged on the balance that remains. If you pay a bit more each month, your balance drops faster, which lowers future interest charges. That creates a compounding benefit: more of each future payment goes to principal instead of interest, and the payoff accelerates.

What if my payment is too low to ever pay the loan off?

If your monthly payment is less than or equal to the monthly interest charge, the balance will not reduce. The calculator will warn you in that case. To make progress, you must increase the payment, reduce the interest rate, or make a lump sum payment that brings the balance down enough for the payment to exceed interest.

Is this accurate for credit cards with daily interest?

It is directionally accurate and often close, but not exact. Credit cards typically accrue interest daily and may have fees or promotional rates. For best accuracy, use the APR on your statement and treat the result as an estimate. If your issuer provides an “interest charge” line each month, that can help you sanity-check the model.

How should I enter a one-time payment if I will make it next month, not today?

This calculator applies a one-time extra payment immediately, which slightly favors earlier payoff. If your lump sum will happen later, you can approximate by leaving it blank and instead adding it to your extra monthly payment for a few months, or by using a start date close to when you plan to make it and then comparing scenarios.

What is the best way to improve the estimate?

Use the most realistic monthly payment amount (including any automatic increases you already plan), use the APR from your latest statement, and add a start date that matches when payments actually occur. If the rate might change, run two scenarios with a lower and higher APR to see a range.