Line of Credit Payoff
Find out how long it takes to clear a line of credit at a fixed monthly payment, and what an extra payment saves.
A worked example
Running this tool on current national benchmarks (Federal Reserve / Freddie Mac via FRED (St. Louis Fed)) — swap in your own numbers to see how the result moves.
- Current balance
- $15,000
- Interest rate (APR)
- 11%
- Monthly payment
- $400
- Extra monthly payment
- $0
3.9 years · $3,465 interest
- Total interest$3,465
- Total paid$18,465
- Payoff time3.9 yrs
How the time to pay off changes with current balance
Holding the other inputs at the example above, here is how the result moves as current balance changes.
| Current balance | Time to pay off | Total interest |
|---|---|---|
| $10,000 | 29 months | $1,410 |
| $15,000 | 47 months | $3,465 |
| $25,000 | 94 months | $12,295 |
| $30,000 | 128 months | $20,988 |
The math behind it
The calculator simulates paying down your current balance at a fixed monthly payment and, optionally, an extra amount. Each month it charges interest on the balance at the monthly rate, applies the rest of your payment to principal, and repeats until the balance clears. It reports how many months that takes and the total interest paid. If your payment does not exceed the monthly interest, the balance never falls — so it tells you the minimum payment needed to make progress.
Assumptions & limits
- The rate is fixed and interest accrues monthly on the outstanding balance.
- Your monthly payment (plus any extra) stays constant until the balance is cleared.
- If the payment only covers interest, payoff is impossible and the tool shows the minimum needed to reduce principal.
- No new draws are added to the line during payoff — it models paying down a frozen balance.
Common questions
Why does my line of credit never seem to get paid off?
If your payment barely exceeds the monthly interest, almost none goes to principal, so the balance crawls down or stalls. And because a credit line lets you keep drawing, new charges can offset your payments. This tool assumes no new draws and shows the true payoff time for a fixed payment — and the minimum you must beat to make headway.
What is the minimum payment to actually reduce the balance?
You must pay more than one month's interest, which is the balance times the monthly rate. Anything at or below that just treads water. The calculator displays this monthly-interest figure so you can set a payment that guarantees the balance falls.
How much does an extra payment help?
Because extra dollars go entirely to principal, they cut the balance interest is charged on going forward, compounding the benefit. Adding even a small extra amount can shave months off the payoff and reduce total interest — enter one to see the effect on your balance.