Extra Payment Calculator
Adding a little to each loan payment can shorten the loan and cut the interest. This shows how much sooner a loan ends, and how much interest is saved, when you add an extra amount each month.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
The regular payment is the standard loan payment. The extra amount is added to it each month and goes to the balance, so the loan is paid off sooner.
The months to payoff come from the loan formula solved for the number of months, rounded up, since the last payment is only partial. Interest saved is the interest on the regular schedule minus the interest with the extra payments. Lender fees and rounding can change the result slightly.
Worked example
Adding $200.00 a month to a $250,000.00 loan at 6.5% cuts it by 95 months, to about 265 months. That saves about $97,618.12 in interest.
Questions
Should I check that my lender allows extra payments?
Yes. Most home loans allow them, but some charge a fee or need a note on how extra money is applied. Ask your lender how it is applied to principal.
Is it better to pay extra or to save?
That depends on your rate, your other debts and your savings. This tool shows the math only, and the choice is yours.
Why does an early extra payment save so much?
Early on, most of the loan is still owed, so each extra dollar of principal removes the balance that interest would have been charged on for the longest time.
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