Loan Payoff Table: Monthly Schedule and Balance

A loan payoff table shows how each scheduled payment is divided between interest and principal, along with the remaining balance after each payment. Enter the loan amount, APR, and term to estimate the monthly payment, total interest, and the balance-by-month schedule implied by a fixed-rate, level-payment loan.

Formula

The calculator uses the standard fixed-payment amortization formula. It first calculates the monthly payment, then estimates total interest as all scheduled payments minus the original principal.

• P is the amount borrowed, in dollars.
• APR is the annual percentage rate entered as a percent, such as 8 for 8%.
• r is the monthly rate, calculated as APR ÷ 1,200.
• n is the number of monthly payments, calculated as years × 12.
• M is the monthly payment, in dollars: M = P × r ÷ [1 − (1 + r)⁻ⁿ].
• Total interest is M × n − P, in dollars.

For a complete payoff table, the balance after payment k can be calculated as P × (1 + r)^k − M × [(1 + r)^k − 1] ÷ r. Here, k is the number of payments already made. This balance formula assumes payments are made monthly and the rate remains unchanged.

Worked Example

Using the calculator’s defaults—$20,000 borrowed, an 8% APR, and a five-year term—the number of payments is 5 × 12 = 60. The monthly rate is 8 ÷ 1,200 = 0.0066667.

1. Monthly payment: $20,000 × 0.0066667 ÷ [1 − (1.0066667)⁻⁶⁰] = $405.53, rounded to the nearest cent.
2. Total of scheduled payments: $405.53 × 60 = $24,331.80.
3. Estimated total interest: $24,331.80 − $20,000 = $4,331.80.

These are the calculator’s rounded outputs. A full table would show the interest and principal portions for each of the 60 payments and the estimated balance after each one. Because each payment is rounded to cents, a real lender’s final payment may differ slightly.

Assumptions

• The interest rate is fixed throughout the modeled term.
• Payments are equal, monthly, and made at the end of each monthly period.
• Interest is modeled monthly using APR divided by 12.
• The estimate excludes fees, taxes, insurance, PMI, escrow, and other charges not entered as inputs.

How to Read a Loan Payoff Table

A typical payoff table has one row per payment period. Common columns include the payment number or date, starting balance, payment amount, interest charged, principal repaid, and ending balance. The starting balance for a row is generally the previous row’s ending balance.

For a standard amortizing loan, interest is calculated on the outstanding balance. Early in repayment, that balance is relatively large, so more of a level payment goes toward interest. As the balance falls, the interest portion usually shrinks and more of each payment reduces principal. The payment can stay level even though its two components change.

In the example, first-month interest is approximately $20,000 × 0.0066667, or $133.33. Of the $405.53 payment, about $272.20 therefore reduces principal, leaving an estimated balance of $19,727.80. The lender’s precise figures can differ because of payment dates, daily interest calculations, rounding, or contract terms.

When a Payoff Table Is Useful

A payoff table can help explain the path from the original balance to zero and make the effect of time and interest easier to see. It can be useful for checking a lender’s schedule, estimating a balance after a given number of regular payments, or understanding how much of a payment is reducing principal. For a personalized schedule, use the lender’s actual balance, rate, payment amount, and payment dates.

To read or create a table, check these details:

• Confirm the starting principal. The amount financed may not match a purchase price if a down payment or other amount is involved.
• Use the contract’s rate and term. Enter APR as a percentage, not a decimal: enter 8 for 8%, rather than 0.08.
• Check the payment frequency. This calculator assumes monthly payments; weekly, biweekly, or irregular schedules require different calculations.
• Compare the ending balance with the expected timing. A payoff quote on a particular date may include accrued interest or other items not represented in a monthly estimate.

Limits and Common Misunderstandings

A payoff table is a calculation based on its inputs, not necessarily the lender’s official account schedule. It does not automatically include fees, missed or late payments, rate changes, payment holidays, or additional principal payments. An adjustable rate or a payment that changes over time cannot be represented accurately by one fixed APR and one level payment.

A common misconception is that the table’s total interest is the same as the total cost of borrowing. It is only the modeled interest under the stated assumptions. Charges outside the principal-and-interest calculation can affect what is paid. Another frequent source of confusion is treating APR as the monthly rate; for this estimate, the monthly rate is APR divided by 12, with the percent converted to a decimal by dividing by 100 as well.

Rounding also matters. A table rounded to cents at every step may not match one that retains extra decimal places internally and rounds only for display. Likewise, the final scheduled payment may be adjusted to clear a small remaining balance. To verify an account or obtain an exact payoff amount, request the current figures and schedule from the lender.

Frequently Asked Questions

What is a loan payoff table?
A loan payoff table, also called an amortization schedule, lists payments over time and shows how each payment is applied to interest and principal, as well as the remaining balance.

How do I calculate the balance after several payments?
Use the balance formula with the original principal, monthly rate, monthly payment, and number of payments already made. A lender’s account balance can differ if timing, fees, or payment history differs from the assumptions.

Does a payoff table include extra payments?
Not unless they are included in the calculation. Extra principal payments can change future balances and interest, so a schedule based only on regular level payments will not show their effect.

Why does the interest portion decrease over time?
With a fixed rate, interest is calculated against the outstanding balance. As regular payments reduce that balance, the interest charged in later periods generally falls.

Is the table an exact payoff quote?
No. It is an estimate using the entered figures and assumptions. The lender’s payoff quote can reflect the actual balance, dates, accrued interest, and contract-specific amounts.

This result is an estimate, and the lender’s disclosure gives the exact figures.

Related

• Loan Payoff Formula: Calculate Your Monthly Payment
• Loan Payoff Calculator XML: Formula and Example
• Loan Payoff Date Calculator: Estimate Your Final Payment

in p | Loan amount | $ | 20000 | 1 | 100000000
in apr | Interest rate (APR) | % | 8 | 0.01 | 100
in yrs | Loan term | years | 5 | 0.0833 | 50
out pmt | Monthly payment | $ | p * (apr / 1200) / (1 - (1 + apr / 1200) ^ -(yrs * 12)) | 2
out int | Total interest | $ | pmt * yrs * 12 - p | 2