Loan Length Calculator
Enter how much you want to spend each month, an interest rate, and a loan amount and the calculator tells you how long it will take you to pay it off!
Instructions
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Explanations
This calculator compares how long it may take to pay off one fixed-rate loan using two different monthly payment amounts. It estimates the payoff time and total interest for each payment.
A payment must be greater than the interest charged in the first month for the balance to begin decreasing. If it is not, the calculator identifies the payment as non-amortizing instead of reporting a false payoff date.
The results are estimates. Actual lender calculations may differ because of daily interest, payment timing, fees, rounding, variable rates, or other loan terms.
Examples
Comparing two monthly payments
For a $100,000 loan at 7.5% annual interest, the first month’s interest is $625. A $600 payment does not cover that interest, so the balance will not decrease. A $1,200 payment pays the same loan off in approximately 119 months and produces about $41,696.95 in total interest.
This comparison shows why even a modest increase above the monthly interest can materially change the payoff period and total interest.
Frequently Asked Questions
Why does the calculator say a payment will not amortize the loan?
The payment is less than or equal to the interest charged in the first month. In that situation, the balance cannot begin decreasing.
Does this include fees or penalties?
No. The estimate uses only the starting balance, fixed annual interest rate, and monthly payment.
Can I compare any two payment amounts?
Yes. Enter the same amount twice for one estimate, or enter two different amounts to compare their payoff periods and interest costs.
Why might my lender’s result differ?
A lender may calculate interest daily, apply different rounding, or include fees, payment timing rules, and other contract terms.
About
Loan Length Calculator
Version: 1.0
Author: Nicholas Tsakiris Alston