Financial calculator
Early loan repayment
See how extra payments shorten a loan and reduce total interest compared with the original schedule.
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About this calculator
Extra principal payments reduce the balance faster so later interest accrues on a smaller amount. The benefit depends on rate, remaining term, and how large the extras are.
This calculator compares a baseline amortizing schedule with a scenario that includes additional payments.
Confirm with your lender whether prepayment penalties apply and whether extras go to principal by default.
How to use it
- 1Enter the loan balance, rate, and remaining term.
- 2Add the extra payment amount and frequency.
- 3Compare months saved and interest saved.
Frequently asked questions
- Is it better to invest than prepay?
- It depends on after-tax investment return versus the loan rate, risk tolerance, and liquidity needs. The calculator only shows the loan-side math.
- Monthly vs lump-sum extra?
- Regular extras and one-time principal payments both help; the tool lets you model the pattern you plan to use.
Results are mathematical estimates. Verify the real conditions of any financial product before making decisions.