Loan payoff time
Simulate monthly interest and a fixed payment until the balance reaches zero.
How this works
Each month, add interest equal to the opening balance × annual percentage rate/1200, then subtract the entered monthly payment. Repeat until the remaining balance reaches zero; the result counts whole payment months and sums the monthly interest. A payment must exceed first-month interest.
Example
The illustration may use different inputs from the reproducible default inputs listed below.
For the default $10,000 balance at 6%, first-month interest is $10,000 × 0.005 = $50. After the $300 payment the balance is $9,750; the calculation repeats each month. With all reset-default inputs, months to payoff: 37.
- Balance ($)
- 10000
- Annual rate (%)
- 6
- Monthly payment ($)
- 300
- Months to payoff
- 37
Scope and assumptions
Assumes one fixed rate, monthly interest and an unchanged payment, with no fees, penalties or new borrowing. The last payment may be smaller than the entered amount. Calculations stop with an error if payoff takes more than 1,200 months; this is not a lender payoff quote.
Investor.gov — financial tools and calculators