Loan Payoff Time Calculator
Enter your current balance, fixed monthly payment and annual interest rate (APR) to see how many months until the loan is paid off, how much total interest you will pay, and the smaller last-month settlement. The widget also surfaces the minimum payment needed just to cover monthly interest — the "minimum-payment trap" that traps balances forever.
Please enter a valid number
Time to pay off
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Total interest
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Total paid
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Last payment
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Standard amortising-loan formula. The final payment is usually smaller because the full payments rarely divide evenly into the balance.
Formula
Monthly rate i = APR / 12 Months to payoff n = −ln(1 − B·i / P) / ln(1 + i) Total paid = (⌈n⌉ − 1) × P + final settlement Total interest = Total paid − B If P ≤ B·i the loan never pays off
- · Applies to fixed-rate, fixed-payment amortising loans (credit cards, personal loans, student loans, mortgages). For variable-rate or floating-rate loans the timeline will drift as the rate changes.
- · The final month is usually smaller than the regular payment — full payments rarely divide evenly into the balance, so the last instalment just settles whatever is left.
- · The "minimum-payment trap": when P ≤ B × i, the balance never falls. US credit cards historically set the minimum at 1 % of balance + interest + fees, which exactly covers the interest — making the minimum payment effectively a perpetual debt sentence.
- · APR is treated as a nominal annual rate divided by 12. If a statement quotes "monthly periodic rate 2.5 %", that is APR ≈ 30 %. Some issuers publish the effective annual rate (EAR) instead — that figure is larger than the nominal APR for the same loan.
- · Assumes payments are made on time and in full. Late fees, penalty rates, and cash-advance APRs would extend the timeline and increase total interest beyond what this tool shows.
- · Reference: standard fixed-payment amortising-loan formula (present value of an annuity). Source: any finance textbook, or HKMA / CFPB published consumer credit guides.
Frequently asked
I owe $50,000 on a credit card at 33 % APR and pay $1,500 a month — how long until it is paid off?
Plug $50,000 balance, $1,500 monthly, 33 % APR into the tool: i = 33 / 100 / 12 = 0.0275 (2.75 %/month). Monthly interest accrual = 50,000 × 0.0275 = $1,375 — meaning $1,375 of your $1,500 goes to interest, only $125 cuts the balance. n = −ln(1 − 50000 × 0.0275 / 1500) / ln(1.0275) ≈ 65 months (5 years 5 months), with total interest ≈ $46,500 — almost as much as the original balance! Bumping the payment to $2,000/mo cuts payoff to 33 months and total interest to ~$15,800 — the savings from a higher payment are typically much larger than people expect.
Why does "paying just the minimum" never seem to pay off the balance?
Most US/HK card issuers set the minimum at "1 % of principal + interest + fees", which is engineered to exactly cover the monthly interest — leaving only 1 % of principal to be retired each month. Example: $10,000 balance at 30 % APR → monthly interest = $250, minimum ≈ $100 + $250 = $350. After that $350, interest for next month is $9,900 × 2.5 % = $247.50, so the balance only inches down. Pay strictly the minimum and the payoff stretches to ~30 years or longer, with total interest typically 1.5–2× the original balance. Way out: significantly raise the payment (try the slider above), or roll the balance to a low-rate instalment plan.
Why is the last payment smaller than the regular monthly payment?
The amortising-loan formula generally gives a fractional number of periods (e.g. 57.68 months). After 57 full payments the balance is small enough that an entire $200 payment in month 58 would over-pay — so the last month settles whatever remains plus the final month of interest. Example: $10,000 at 6 % APR with $200/mo → 57 payments of $200 plus a final $136.14, totalling ~$1,536 in interest. If you prefer equal payments, slightly raise the monthly amount so the formula resolves to a whole number, or simply pay the final balance early in one lump.
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