How much interest you save and how many months sooner you pay off a loan with an extra monthly payment. Results update as you type.
The standard payment is calculated first. Then the loan is simulated month by month with the extra payment added: each month's interest is charged on the remaining balance, and the rest reduces principal. The simulation stops when the balance reaches zero.
Results are estimates for education only and are not financial advice.
Usually yes, as long as the regular payment already covered that month's interest. Tell your lender the extra amount is a principal-only payment, and check your statement to confirm it was applied that way.
Standard monthly payment = P × r ÷ (1 − (1 + r)^-n). P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. Each month, interest = remaining balance × r. The rest of the standard payment, plus the extra payment, reduces the principal.
A $300,000 loan at 6% over 30 years has a standard payment of $1,798.65 and total interest of $347,515. Adding an extra $200 each month pays the loan off in 279 months instead of 360, with total interest of $256,341. That saves $91,173 in interest and 81 months, or 6 years and 9 months.
No. Your required payment stays the same; the extra amount is voluntary and only shortens the loan. If you stop paying extra, the loan simply returns to its original payoff schedule, assuming the rate does not change.
Any extra payment still helps, because every extra dollar goes to principal and reduces future interest. This calculator assumes the same extra amount every month, so treat its result as an estimate if your extra payments vary.
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