Loan Payoff Calculator: How Long To Pay Off Your Loan?
Stockholder.me offers a user-friendly and easy-to-use loan payoff calculator to help individuals and businesses understand the true cost of their loans and make a plan to pay them off more quickly.
By using the loan payoff calculator, you can input your current loan balance, APR (Annual Percentage Rate) or interest rate, and expected monthly payment to calculate the number of months and years it will take to repay their loan as well as the total interest paid.
What is a Loan Payoff Calculator?
This loan payoff calculator is an easy-to-use and valuable tool for those who want to manage their debt and work towards becoming debt-free. Additionally, it can also be used to compare different loan scenarios and determine the best loan option based on total interest paid and the length of time it will take to repay the loan.
How to use the Loan Payoff Calculator?
Using Stockholder.me’s loan payoff calculator is a simple and straightforward process. Here is a step-by-step guide on how to use the calculator:
- Input your current loan balance
- Input your APR (Annual Percentage Rate) or interest rate
- Input your expected monthly payment into the designated fields.
- Press the “Calculate payoff” button.
- The calculator will provide you with important information such as the number of months and years it will take to pay off your loan, as well as the total interest paid.
Here is a definition of each input to get an accurate simulation:
- Current loan balance: The total amount of money that you currently owe on your loan.
- APR (Annual Percentage Rate) or Interest rate: The annual percentage rate of the loan, APR includes not only the interest rate but also any additional fees or charges associated with the loan. More information on the difference between APR and Interest Rate in the next section.
- Expected monthly payment: The amount of money that you plan to pay towards your loan each month.
- Number of months to pay off: The estimated number of months it will take to pay off your loan based on the input provided.
- Total interest paid: The total amount of interest that you will pay over the life of the loan.
- Number of years to pay off: The estimated number of years it will take to pay off your loan based on the input provided.
By providing accurate information, the loan payoff calculator will be able to give you a realistic view of your situation, and you’ll be able to compare different loan options and make an informed decision about which loan is right for you.
Keep in mind that APR is different from the interest rate and it includes all the additional fees or charges associated with the loan. That’s why it is important to use APR instead of the interest rate when you use the loan payoff calculator.
Does APR is the same than interest rate?
APR (Annual Percentage Rate) and interest rate are related but not exactly the same. The interest rate is the percentage that is applied to the principal amount of a loan, and it is used to calculate the amount of interest that is charged on the loan.
On the other hand, APR is the annual percentage rate that includes not only the interest rate but also any additional fees or charges associated with the loan.
You can use the interest rate in this calculator but using the annual percentage rate will give you a more realistic estimation as it includes all the fees.
Q&A on the Loan Payoff Calculator
Why does the tool display “Loan can’t be repaid”?
The loan will be considered unpayable if the monthly payment amount is not sufficient to cover both the interest and the principal on the loan. For example, if the loan balance is $10,000 and the interest rate is 20% with a monthly payment of $50, the loan will be unpayable.