Loan Payoff Race
Most calculators give you one monthly payment number and call it done. This shows you, payment by payment, how much of your money is actually interest — then lets you race two payoff plans against each other.
Set up your loan
Illustrative estimate only, not financial advice — real loans include fees, taxes, and insurance this tool doesn't model. Check exact figures with your lender.
Where each payment goes
Interest (top) vs. principal (bottom) for every monthly payment in your plan. Notice how much of the early payments are interest.
The race: standard schedule vs. your plan
Standard schedule Your plan
Why your early payments barely touch the principal
Every fixed-rate loan uses the same math: the interest owed each month is calculated on whatever balance is left, and in the first few years that balance is still close to the full loan amount — so interest eats most of the payment. As the balance shrinks, less of each payment goes to interest and more goes to principal, which is why the last few years of a loan pay it off fast while the first few years feel like they barely move the needle.
That's exactly what the top chart shows: a wide interest band early on that narrows over time, and a principal band that does the opposite. It's not a trick or a bad deal — it's just how amortization works — but almost nobody sees it laid out payment by payment, which is why it's so easy to underestimate.
Set your real numbers
Enter your loan amount, rate, and term — the same figures on any loan estimate.
Add an extra payment
Even a small consistent extra amount can cut years and thousands of dollars in interest.
Test a rate shock
See what an adjustable-rate reset would actually do to your payment and total cost.
Watch the two plans race
The balance chart shows exactly when your plan would beat the standard schedule to zero.