See exactly how much time and interest you save by adding a recurring extra amount to your current monthly loan payment.
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How the Early Loan Payoff Calculator works
Adding even a modest extra amount to your regular monthly payment goes straight toward reducing
your principal, which means less interest accrues every month after that. Over the life of a loan,
this compounding effect can shave off months or years and save a meaningful amount of interest.
This calculator runs two full amortization schedules side by side: one using your current payment,
and one using your current payment plus the extra amount you specify. Comparing the two shows you
exactly how much time and interest the extra payment saves.
Both schedules use the standard amortization formula: Payment = (P × r) / (1 − (1 + r)^−n) just applied with a different fixed monthly payment for each schedule
The savings tend to be largest when extra payments start early in the loan, since more of your
balance is still outstanding and generating interest.
Frequently asked questions
Some loans, particularly certain mortgages and older auto loans, charge a fee for paying off early. Check your loan agreement or ask your lender before committing to a plan of extra payments.
Yes — for an extra payment to reduce your interest and shorten your term, it needs to be applied directly to principal rather than counted as a future regular payment. Confirm with your lender that extra payments are applied this way.
Not necessarily. It's usually worth comparing your loan's interest rate to what you could earn by investing the extra money, and making sure you have an emergency fund and no higher-interest debt first.
Even a small, consistent extra payment adds up over the life of a loan, especially early on. Try a few different amounts in the calculator above to see the effect before deciding what fits your budget.