Personal Loan Simulator

Plan your personal loan payoff — test extra payments and see how fast you can be debt-free.

Personal Loan Payoff Strategies

Personal loans typically have higher interest rates (8-24%) and shorter terms (2-7 years) compared to mortgages. The good news: because they're shorter, even small extra payments have outsized impact. An extra $100/month on a $20,000 personal loan at 12% can save $2,000+ in interest and pay it off 8-12 months early.

Unlike mortgages, personal loans often have prepayment penalties in the first 1-2 years. Check your loan agreement before making extra payments. If there's no penalty, aggressive prepayment is almost always the best financial move given the high rates.

When to Prepay a Personal Loan

Rate above 10% — prepaying gives you a guaranteed 10%+ return, better than most investments
No prepayment penalty — check your agreement first
Emergency fund is set — don't drain savings to prepay, keep 3-6 months reserved
No higher-rate debt — pay off credit cards (18-24%) before personal loans (8-15%)