Early Loan Payoff Calculator
What paying a little extra every month does to the term and the interest.
Method
How it works
The calculator first finds the scheduled payment for the original fixed-rate loan. It then simulates each month, adds interest to the remaining balance and applies the base payment plus the entered extra amount.
The simulation stops when the balance reaches zero. Comparing it with the original schedule gives months and interest saved; prepayment penalties and changing rates are excluded.
Common questions
Frequently asked questions
Does an extra loan payment reduce principal immediately?
In the monthly simulation, interest is calculated first and the remaining payment amount reduces the balance.
Can extra payments shorten the loan term?
Yes. A larger amount applied each month reduces the simulated balance faster and can lower both term and interest.
Are early-repayment penalties included?
No. The result assumes the extra amount can be paid without fees or restrictions.
Not financial advice. This calculator is for general informational purposes only. Check figures independently before making financial decisions.