1. Enter the current loan
Use the remaining principal, rate and number of years left—not the original loan amount and term.
Loans
Early loan repayment calculator
Add a regular extra payment to your current loan and compare the new payoff date with the original schedule.
New repayment term
3 yr 11 mo
Interest saved
$3,774.92
Time saved
1 yr 1 mo
Regular payment
$1,933.28
Payment with extra
$2,433.28
Payment schedule
A breakdown of each payment into principal, interest and extra repayment.
| Month | Payment | Principal | Interest | Extra | Balance |
|---|---|---|---|---|---|
| 1 | $2,433.28 | $1,933.28 | $500.00 | $500.00 | $98,066.72 |
| 2 | $2,433.28 | $1,942.95 | $490.33 | $500.00 | $96,123.77 |
| 3 | $2,433.28 | $1,952.66 | $480.62 | $500.00 | $94,171.11 |
| 4 | $2,433.28 | $1,962.42 | $470.86 | $500.00 | $92,208.69 |
| 5 | $2,433.28 | $1,972.24 | $461.04 | $500.00 | $90,236.45 |
| 6 | $2,433.28 | $1,982.10 | $451.18 | $500.00 | $88,254.35 |
| 7 | $2,433.28 | $1,992.01 | $441.27 | $500.00 | $86,262.34 |
| 8 | $2,433.28 | $2,001.97 | $431.31 | $500.00 | $84,260.38 |
| 9 | $2,433.28 | $2,011.98 | $421.30 | $500.00 | $82,248.40 |
| 10 | $2,433.28 | $2,022.04 | $411.24 | $500.00 | $80,226.36 |
| 11 | $2,433.28 | $2,032.15 | $401.13 | $500.00 | $78,194.21 |
| 12 | $2,433.28 | $2,042.31 | $390.97 | $500.00 | $76,151.90 |
The first 12 months are shown initially.
Check whether your lender charges early repayment fees or uses a different payment allocation order.
Calculation method
How the new payoff date is estimated
The calculator simulates the loan month by month. Interest is charged on the remaining balance, and the regular plus extra payment reduces principal until the balance reaches zero.
Detailed guide
Compare a shorter loan term with a lower payment
Extra principal reduces the balance on which future interest is charged. This calculator rebuilds the loan month by month and compares two common strategies: keep the scheduled payment to finish sooner, or recalculate a lower payment over the original term.
You can combine a recurring extra amount with one one-time payment and inspect or download the revised schedule.
Model early repayment
2. Add extra principal
Enter a monthly extra amount, an optional one-time payment and the month it will be made.
3. Compare strategies
Switch between reducing the term and reducing the payment, then compare interest saved and cash-flow impact.
Month-by-month payoff model
New balance = Old balance + Interest − Scheduled principal − Extra principal
Interest is charged on the opening balance each month. Scheduled and extra principal then reduce the balance before the next month.
For the lower-payment strategy, the payment is recalculated from the new balance and remaining original term after an extra payment.
Extra-payment example
Adding $500 each month to a five-year, $100,000 balance at 6% pays the loan off earlier and reduces total interest. A one-time payment produces the largest benefit when made earlier because more future interest is avoided.
Before making an extra payment
Principal allocation
Confirm that the lender applies the extra amount to principal rather than treating it as an advance on future scheduled payments.
Prepayment penalties
Some contracts restrict or charge for early repayment. Check the loan agreement before relying on the estimated savings.
Liquidity tradeoff
Paying debt faster can reduce interest but also reduces cash available for emergencies or higher-priority obligations.
Decision guide
Compare extra-payment strategies
The strongest payoff calculators show the revised schedule, interest saved, and new payoff date. The timing of an extra payment matters because principal reduced earlier is no longer available for future interest charges.
Shorter term or lower required payment
Keeping the regular payment and shortening the term usually maximizes interest savings. Recasting or reducing the payment improves monthly flexibility. Compare both approaches by payoff date, total interest, and the minimum payment you would owe if income fell.
Confirm how the lender applies money
An additional transfer may be held for the next installment unless it is designated as principal. Check required notices, minimum amounts, processing dates, and prepayment terms. The calculator assumes immediate application under its model; the contract controls the real schedule.
Protect liquidity
Interest savings are useful, but cash sent to a loan can be hard to recover. Keep an emergency reserve before making a large payment and compare the guaranteed interest avoided with other near-term needs. Regular smaller prepayments can be safer than using every available dollar at once.
Extra-payment checklist
- Mark the payment for principal.
- Verify the effective date.
- Compare term and payment reduction.
- Preserve emergency cash.
How to compare scenarios
Save a baseline, then change only one input at a time: amount, rate, term, or recurring payment. Record the supporting outputs as well as the headline result—contributions, interest, total cost, remaining balance, or target date. This isolates the assumption that actually changes the decision instead of hiding it inside several simultaneous edits.
Do not tune every assumption until the calculator produces a preferred answer. Start with a cautious case, follow with a central case, and treat the favorable case as an upside scenario. A calculator result is not a lender quote, market forecast, or tax determination; actual dates, rounding, fees, contract rules, and required payments must be checked in primary documents.
Keep enough precision in the inputs and round only the output used for a decision. If the estimate supports a transaction, loan, tax calculation, or long-term plan, repeat it with figures from the contract or official statement. Any difference helps identify the assumption that still needs verification.
Early repayment questions
Is it better to reduce the term or the payment?
Keeping the payment generally saves more interest; reducing the payment improves monthly cash flow. The better choice depends on your goal.
When does an extra payment save the most?
Earlier payments usually save more because they reduce the balance for more future interest periods.
Does the calculator include penalties?
No. Add any lender fee to your decision separately.
Can I combine monthly and one-time payments?
Yes. Both can be entered in the same scenario.
Updated: July 28, 2026
Useful comparisons
Related financial calculators
Loan payment
Calculate fixed or declining payments, total interest and a downloadable amortization schedule.
Mortgage
Estimate principal, interest, property tax, insurance, HOA, PMI and the amortization schedule.
Auto loan
Calculate a car payment with down payment, trade-in equity, taxes, fees and extra payments.