How to use it
- Enter Loan amount.
- Enter Annual rate %.
- Enter Term (years).
The formula
Payoff time depends on balance, rate and payment size.
Worked example
Raising a payment by 10% can bring a 30-year loan under 25 years.
Frequently asked questions
What shortens payoff most?
Larger or more frequent principal payments.
Is there a penalty?
Some loans have prepayment penalties — check your terms.
Tips
- Compare the total interest, not just the monthly payment.
- A larger down payment lowers both the loan and any insurance.
- Even small extra principal payments cut years off the term.
Key terms
- Principal
- The amount borrowed, before interest.
- Amortization
- Spreading repayment into equal periodic payments.
- Escrow
- Funds held for taxes and insurance.