Extra payment calculator
What paying a bit more each month does to a loan — in interest saved and in years removed from the term.
$
%
years
$
Paid on top of the required payment, straight against principal.
Interest saved
$105,429
And the loan finishes 6 yr 7 mo early.
- Without extra
- 30 years
- With extra
- 23 yr 5 mo
- Interest without
- $408,142
- Interest with
- $302,714
This assumes every extra dollar is applied to principal in the month you pay it. Some lenders hold extra payments or apply them to the next instalment instead — worth confirming before you rely on it.
Questions
- Why does a small extra payment save so much?
- Every extra dollar goes straight against the principal, and the principal is what interest is charged on. Reducing it early removes the interest that would have accrued on that amount for every remaining month of the loan.
Why this number behaves the way it does
- Why your lender's quote doesn't match the calculatorA calculator gives you principal and interest. A lender quotes PITI, plus pricing set by your credit file. Here is every line between the two.
- What paying an extra $100 a month actually doesOverpaying works because of where the money lands, not how much it is. Why the same $100 is worth several times more in year two than year twenty.