How Long to Pay Off $8,000 at 12% APR Paying $250 a Month

If you owe $8,000 on a personal loan at 12% APR and pay $250 every month, the balance reaches zero in about 39 months (3 years and 3 months). You will pay roughly $1,690 in interest, for a total of $9,690.

That result assumes the rate stays fixed, no new charges are added, and every payment is made on time. Small changes to any of those assumptions move the date. A 12% rate is moderate. Interest is about $80 in month one, and the $250 payment reduces principal by roughly $170. Total interest comes to about 21% of the original balance.

Amortization summary for $8,000 at 12% APR with a $250 monthly payment.
Year	Principal paid	Interest paid	Balance at year end
1	$2,156	$844	$5,844
2	$2,429	$571	$3,415
3	$2,738	$262	$677
4	$677	$13	$0

Amortization summary for $8,000 at 12% APR with a $250 monthly payment.

Year

Principal paid

Interest paid

Balance at year end

$2,156

$844

$5,844

$2,429

$571

$3,415

$2,738

$262

$677

$13

What the payment covers in the first year

The first monthly interest charge is about $80. Your $250 payment therefore applies roughly $170 to principal in month one. That ratio improves slowly: by the end of the first year the balance is still close to its starting point, which is why early payoff progress can feel invisible.

Across the full payoff, interest equals about 21% of the original balance. That figure — not the monthly payment — is the real cost of the schedule.

What would shorten the payoff

The most effective lever here is the term, not the rate. Increasing the payment to $300 cuts roughly eight months and about $300 of interest. Refinancing only helps if you can find a rate below about 9%.

Is consolidation or refinancing worth it?

If this loan consolidated credit cards, the risk is that the cards get used again. Track both the loan balance and the card balances monthly.

Compare the total interest figures, not the monthly payments. A longer loan almost always has a lower payment and a higher total cost.

What to watch

Personal loans are unsecured and usually fixed-rate. Check the origination fee: a 5% fee on $8,000 is $400, which can erase a rate advantage.

Treat the schedule as a baseline. Re-run the numbers after any rate change, windfall, or change in income.

Frequently asked questions

How long does it take to pay off $8,000 at 12% APR paying $250 a month?

About 39 months, or 3 years and 3 months, assuming a fixed rate and no new charges. Total interest is approximately $1,690.

How much of my first payment is interest?

Roughly $80 of the first $250 payment is interest at 12% APR. The rest reduces principal.

What happens if I pay extra each month?

Extra payments go to principal, which removes future interest. Even a modest increase compounds: the earlier in the schedule the extra arrives, the larger the effect.

Does this include fees?

No. Late fees, annual fees, origination fees, and balance-transfer fees are excluded. Add any fee to the balance if you want to see its effect.