Loan Payoff Calculator

The amount to settle a loan today is the present value of the payments you have left — the current balance, without the future interest baked into the coming installments. The gap between the sum of the remaining payments and that present value is your interest saved. The higher the rate and the more payments left, the bigger the saving.

Compare the loan's rate with what the same money would earn invested. If the loan costs more than a safe investment returns — which is usually the case at high rates — paying it off is the better return, risk-free. Low-rate loans (a cheap mortgage) can be worth keeping while you invest instead.

Most loans let you pay off early with the interest reduced, but check for a prepayment penalty — some contracts charge a fee that eats into the saving. Always confirm the official payoff quote with your lender; this is an estimate assuming a constant rate and no fees.