How to use it
- Enter Loan amount.
- Enter Annual rate %.
- Enter Term (years).
The formula
Payoff time falls as the payment rises.
Worked example
Adding $100/month often cuts a 5-year loan by many months.
Frequently asked questions
What clears a loan fastest?
Larger payments toward principal.
Does rounding up help?
Small consistent extra amounts add up.
Tips
- A shorter term costs less overall even if the payment is higher.
- Check the APR, not just the rate, to compare fairly.
- Read the fine print for fees and prepayment penalties.
Key terms
- APR
- Yearly cost including fees, as a percentage.
- Term
- How long you repay the loan.
- Collateral
- An asset securing the loan.