Loan Early Payoff Calculator

Does paying early actually pay off?

On a simple-interest personal loan, yes — every extra dollar goes straight to principal and permanently removes the interest that dollar would have accrued. Adding $100 a month to a $12,000 balance at 15.9% typically cuts close to a year off the term and saves several hundred dollars in interest.

Two things to verify before you commit. First, confirm there's no prepayment penalty — most reputable personal loan lenders don't charge one, but check your note. Second, confirm extra payments are applied to principal rather than held as a prepaid future installment; you may need to mark the payment "principal only."

If you're paying down high-rate card debt instead, compare it against refinancing with the debt consolidation calculator. To size a new loan, use the personal loan calculator, and check any offer's real cost with the APR calculator. Paying a loan down on schedule also builds payment history — see improve credit before applying.