Loan Repayment Calculator
Not sure how long it will take to pay off your loan? Enter your payment amount to see your payoff timeline, or enter a term to see your required payment.
How Repayment Timelines Are Calculated
Your repayment timeline depends on three factors: loan amount, interest rate, and payment size. Increase any one and the others adjust to maintain the balance.
The formula calculates how many months it takes for your payments to bring the balance to zero, accounting for interest accruing each month. If you pay exactly the monthly interest, you never pay down principal and the loan never ends. You must pay more than the monthly interest to make progress.
For an $18,000 loan at 9%, monthly interest is about $135. If you pay $300 monthly, $135 covers interest and $165 reduces principal. It takes 96 months to pay off. Bump your payment to $400, and you're done in 57 months—39 months sooner.
Finding Your Ideal Payment Amount
Start with your budget. How much can you comfortably afford each month without sacrificing essentials or emergency savings? That's your ceiling.
Next, consider your timeline. If you're 45 and want the loan gone before retirement at 65, you have 20 years maximum. Work backward: what monthly payment achieves that goal given your rate and balance?
Don't stretch yourself too thin chasing an aggressive payoff. Missing payments due to overcommitment costs more in fees and credit damage than the interest you'd save. Find the sweet spot between manageable and ambitious.
Strategies for Faster Repayment
Round up your payment. If your required payment is $287, pay $300. The extra $13 might seem trivial, but it compounds over time, shaving months off your term and cutting interest.
Apply windfalls directly to principal. Tax refunds, bonuses, or cash gifts can knock out big chunks of your loan in one shot. A single $1,000 principal payment can save hundreds in future interest.
Refinance if you can get a lower rate. Dropping from 9% to 6% on an $18,000 loan saves about $1,500 in total interest over 5 years, even accounting for small refinance fees. Shop rates annually to see if better terms are available.
Frequently Asked Questions
How do I know if I'm paying enough each month?
If your monthly payment barely exceeds the monthly interest charge, you'll take decades to pay off the loan. Aim for payments that significantly reduce principal each month.
Can I pay off my loan faster without extra payments?
Not really. To pay off faster, you must either increase your monthly payment or make extra lump-sum payments toward principal. There's no shortcut around the math.
What happens if I skip a payment?
Skipping a payment doesn't pause interest. Interest continues accruing daily, increasing your balance. You'll also face late fees and potential credit score damage.
How much faster will I pay off my loan with an extra $100 monthly?
It varies by loan size and rate, but an extra $100 per month on an $18,000 loan at 9% can shave 15-20 months off your repayment and save $1,000+ in interest.
Is it better to pay biweekly or make one extra payment per year?
Both methods create 13 monthly equivalents per year and produce nearly identical savings. Choose whichever aligns better with your paycheck schedule.