Personal Loan Payoff Planner — Pay Off Your Loans Faster
See exactly when your personal loans will be paid off and how much interest you can save.
Your debts
Debt name
Balance
Rate
Min pay
Amount above minimums — applied to priority debt
Avalanche
3yr 6mo
$5,351 interest
Snowball
3yr 7mo
$5,861 interest
Debt free in
3yr 6mo
Total interest
$5,351
Interest saved
$3,547
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Assumes fixed interest rates and minimum payments. Actual payoff may vary. For educational purposes only.
Personal Loans payoff — what you need to know
Personal loan balances in the US reached $245 billion in 2026, with the average borrower carrying $11,048 at an average APR of 12.3% for excellent credit and 21.5% for fair credit (TransUnion, Q1 2026). Personal loans are fixed-rate and fixed-term — unlike credit cards, the payoff timeline is deterministic. However, extra payments accelerate the payoff significantly: adding $200/month to a $15,000 loan at 14% saves $2,100 in interest and cuts 18 months from the term. This planner calculates the exact savings for your specific loan balances and rates.
Interest rates for Personal Loans (2026)
Personal loan APRs in 2026 vary widely by credit score and lender. Excellent credit (750+): 7–12%. Good credit (700–749): 12–18%. Fair credit (650–699): 18–28%. Below 650: 28–36%. Buy now pay later (BNPL) products often carry 0% for a promotional period then 36% or more. Online lenders (SoFi, LightStream, Marcus) typically offer 0.5–2% lower rates than traditional banks for the same credit profile.
Avalanche vs snowball — which works better for Personal Loans?
| Strategy | Best when | Trade-off |
|---|---|---|
| 🏔️ Avalanche | Rate differences between debts are large (5%+) | Saves the most interest — fewest early wins |
| ⛄ Snowball | You need quick wins to stay motivated | Higher total interest — fastest first payoff |
Tips specific to personal loan payoff
- 1
Check for prepayment penalties before making extra payments. Most modern personal loan lenders (especially online lenders) have eliminated prepayment penalties, but some traditional bank loans still include them. Read your loan agreement or call your servicer.
- 2
BNPL (buy now pay later) loans with deferred interest are the highest-priority targets — once the 0% promotional period ends, retroactive interest at 36%+ often applies to the original balance. Target these first regardless of which strategy you use.
- 3
If your credit score has improved since taking out a high-rate personal loan, refinancing to a lower rate can reduce your interest cost dramatically. Getting pre-qualified with multiple online lenders (soft credit pull, no score impact) takes 5 minutes.
- 4
For debt consolidation loans specifically, close the credit card accounts you consolidated after paying them off — or at minimum cut up the cards. The most common debt consolidation failure is running up the paid-off cards again.
- 5
Direct your servicer to apply any extra payments to principal, not to advance your next scheduled payment date. This matters for fixed-term instalment loans where "paid ahead" status does not reduce the loan term.
Other debt types
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Mix of any debt type — credit cards, loans, medical bills
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Personal loan payoff — frequently asked questions
What is a good personal loan interest rate in 2026?
For borrowers with excellent credit (750+), personal loan APRs of 7–12% from online lenders represent a good rate in 2026. For good credit (700–749), 12–18% is typical. Rates above 24% should prompt consideration of whether a lower-rate option (credit union, secured loan, home equity) is available. Credit unions typically offer personal loan rates 3–6% below bank rates for the same credit profile.
Does paying off a personal loan early hurt your credit score?
Paying off a personal loan in full closes the account, which can cause a small, temporary dip in your credit score (5–15 points) due to reduced account diversity and a shorter average account age. This effect is minor and typically recovers within 6–12 months. The financial benefit of eliminating the interest obligation almost always outweighs this cosmetic score impact.
Should I use a personal loan to consolidate credit card debt?
A debt consolidation personal loan makes sense when: (1) the loan APR is at least 5–8% lower than your credit card APRs, (2) you are confident you will not run the paid-off cards back up, and (3) the loan term is no longer than the time it would otherwise take to pay off the cards. A 12% personal loan replacing 24% credit card debt saves meaningful interest. The most common failure mode: people consolidate, then accumulate new card balances, ending up with both the loan and the card debt.
What is deferred interest on BNPL and how do I avoid it?
Deferred interest (common on buy now pay later and store financing products) means 0% APR for a promotional period — but if the full balance is not paid by the end of the period, interest at the full rate (often 29.99–36.99%) is charged retroactively on the entire original amount, not just the remaining balance. To avoid deferred interest traps: always pay off the full promotional balance before the deadline, and enter the deferred-interest product as a high-APR debt in this calculator.
What is the difference between a personal loan and a personal line of credit?
A personal loan disburses a lump sum and has a fixed monthly payment over a set term — ideal for one-time expenses with a known cost. A personal line of credit allows repeated draws up to a credit limit, with interest only on the outstanding balance — ideal for variable or ongoing expenses. Personal loans typically have lower rates than personal lines of credit for the same credit profile. This calculator is designed for fixed instalment loans (personal loans); for revolving lines of credit, use the credit card variant.