See how many months and how much interest an extra monthly payment can save on a loan, compared to paying the minimum.
Even a small extra payment each month can cut months, sometimes years, off a loan and save a meaningful amount in interest. This calculator compares the standard payoff schedule against one with an extra monthly amount applied.
Payoff Speed Calculator
Loan Balance:
Annual Interest Rate (%):
Current Monthly Payment:
Extra Monthly Payment:
Months Without Extra: —
Months With Extra: —
Time Saved: —
Interest Saved: —
How Extra Payments Speed Up Payoff
Every extra dollar paid toward a loan goes straight to the principal, which means less balance to charge interest on going forward. Over time this compounds, so even a modest extra payment can shave off multiple months or years, and the savings grow the earlier in the loan term the extra payments start.
How to Use This Calculator
- Loan Balance: enter your current remaining balance.
- Annual Interest Rate: enter your loan’s yearly interest rate.
- Current Monthly Payment: enter what you pay now each month.
- Extra Monthly Payment: enter an additional amount you’re considering adding.
This calculator uses the standard loan amortization formula, applying your monthly payment (plus any extra) against the declining balance each month until it reaches zero.
Did You Know?
- Many lenders let you specify that extra payments go toward principal only; without that instruction, some lenders apply extra payments toward future scheduled payments instead, which won’t speed up payoff the same way.
- Check for a prepayment penalty before making large extra payments; most consumer mortgages issued after 2014 in the U.S. don’t have one, but it’s worth confirming with your lender.
Frequently Asked Questions
Does this work for mortgages, car loans, and personal loans?
Yes, as long as it’s a standard fixed-rate, fixed-payment loan, the math works the same regardless of loan type.
What if my current payment doesn’t cover the interest?
If the monthly payment is lower than the interest accruing, the balance would never pay down; the calculator will flag this so you can adjust the payment amount.
Should I make extra payments or invest the money instead?
That depends on your loan’s interest rate versus expected investment returns and your own risk tolerance; this calculator only shows the loan side of that comparison. This isn’t financial advice, just the math on the loan itself.