Extra Loan Payment Calculator
Making extra payments on a loan can significantly reduce the total interest you pay and shorten the time it takes to become debt-free. Even small extra amounts can make a big difference over time.
How it Works:This calculator first determines your standard monthly payment. Then, it recalculates the loan's amortization schedule with your extra payment included, showing how much faster the principal is paid down.
The standard monthly payment (M) is calculated using the loan amortization formula:
$$ M = P \frac{r(1+r)^n}{(1+r)^n - 1} $$
Where:
P = Principal loan amount
r = Monthly interest rate (annual rate / 12)
n = Number of payments (loan term in years × 12)
This calculator is for informational purposes. Check with your lender to ensure extra payments are applied directly to the principal and that there are no prepayment penalties.
See the impact of extra payments on your loan payoff.