Line of Credit Payoff
Use this calculator to see what it will take to pay off your line of credit, and what you can change to meet your repayment goals.
How the line of credit payoff calculator works
It steps your line-of-credit balance down month by month at a fixed payment — charging interest on the remaining balance and applying the rest to principal — and reports the payoff time and total interest, including the effect of any extra payment.
Worked example: with current balance of $15,000, interest rate (apr) of 11.00% and monthly payment of $400, the line of credit payoff calculator shows time to pay off of 47 months.
- Total interest
- $3,465
- Total paid
- $18,465
- Payoff time
- 3.9 yrs
- Monthly interest now
- $137.50
The formula
Each month: interest = balance × monthly rate; principal = payment − interest. The balance is reduced until it reaches zero.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the line of credit payoff
Why might my line of credit never get paid off?
If your payment only covers the monthly interest, the principal never falls. The calculator flags this and shows the minimum you must exceed.
How is a line of credit different from a loan?
A line of credit is revolving and usually carries a variable rate; a loan is a fixed lump sum. This tool models paying down a fixed balance at a set payment.
Does an extra payment help much?
Yes — on revolving credit, extra principal payments cut both the payoff time and the interest noticeably, especially at higher rates.
Is the Line of Credit Payoff free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.