See how much an extra payment saves you

Extra loan payment calculator

Calculate the interest and time saved by paying extra each month toward a loan or mortgage.

Formula

simulates monthly amortization with and without the extra payment, comparing total interest paid and time to pay off the loan

Assumptions

• Assumes the interest rate and payment amounts stay constant for the life of the loan.
• Caps the simulation at 100 years — if a payment amount never covers the monthly interest, payoff is treated as not achievable.
• Some loans charge an early-repayment penalty for paying extra — check your loan agreement before assuming the full benefit shown here.

Frequently asked questions

Why does a small extra payment save so much interest?
Extra payments go entirely toward principal, which reduces the balance interest is calculated on for every remaining month of the loan — the earlier you pay extra, the more months of reduced interest you benefit from.

Does my bank apply extra payments to the principal automatically?
Not always — some banks apply extra payments toward future installments instead of reducing principal immediately. Confirm with your bank that extra payments are applied directly to principal to get the benefit shown here.