Loan Payoff Calculator With Amortization

A $25,000 loan at 7% over 5 years has a payment of $495.03 and costs $4,702 in interest. An extra $100 a month ends it in 4 years 1 month and cuts the interest to $3,763.

Enter your own loan to get the schedule by year, then read below how the first payments split.

Loan payoff amortization calculator

Paid off in 4 years 1 month with $3,763 of interest, against $4,702 with no extra: you save $939.

YearInterest paidPrincipal paidBalance at year end
1$1,574$5,567$19,433
2$1,171$5,969$13,464
3$740$6,401$7,064
4$277$6,863$200
5$1$200$0

The first six payments of the example loan

On $25,000 at 7%, each payment is $495.03. Month 1 interest is the balance times 7% divided by 12.

PaymentInterestPrincipalBalance after
1$145.83$349.20$24,651
2$143.80$351.23$24,300
3$141.75$353.28$23,946
4$139.69$355.34$23,591
5$137.61$357.42$23,234
6$135.53$359.50$22,874

A longer loan keeps more of the early payment as interest

The same balance and rate over three terms: the share of the first year's payments that goes to interest.

TermMonthly paymentInterest share of year 1
5 years$495.0327%
15 years$224.7164%
30 years$166.3387%

How the calculator works

  1. The payment comes from the standard loan formula for your balance, rate and years left.
  2. Each month, interest = balance x rate / 12. The payment plus the extra, minus that interest, comes off the balance.
  3. The last year may be shorter: the table stops when the balance reaches zero.

It assumes a fixed rate and that every payment lands on its due date. For the effect of extras on a mortgage see the extra payments mortgage payoff calculator, and for the balance after a set number of payments the estimated loan payoff calculator.

Check before you pay early

The CFPB says a prepayment penalty is a fee that some lenders charge if you pay off all or part of your mortgage early.

Other loans set their own terms, so read your loan agreement for a prepayment fee and ask how an extra payment is applied.

Frequently asked questions

What is an amortization schedule?

It lists each payment on a loan split into interest and principal, with the balance left after it. Early payments are mostly interest because the balance is at its largest.

How do I use this calculator for my loan?

Enter the balance you owe now, the rate and the years left from your statement. Add an extra monthly amount to see the shorter schedule next to the interest it saves.

Why does the interest column fall every year?

Interest is the balance times the rate divided by 12. Each payment lowers the balance, so the next month's interest is smaller and more of the same payment goes to principal.

Does an extra payment change the payment?

No. The payment stays the same and the schedule ends sooner. Ask your lender to apply the extra money to principal.

How do I build the schedule in a spreadsheet?

Use =-PMT(rate/12, months, balance) for the payment. Each row: interest = previous balance x rate/12, principal = payment - interest, new balance = previous balance - principal.

Sources

Every figure on this page comes from the pages below. Checked 2026-11-14. Rules change, so confirm with your own servicer.

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