Extra Payment Loan Payoff Calculator
See how much faster you pay off a loan and how much interest you save by adding a fixed extra amount every month.
How it works
Each month interest = balance × (rate ÷ 12); the payment above that reduces the balance
Extra principal payments attack the balance directly, so less interest accrues in every later month. The earlier in the loan you add extra, the more you save, because the balance is highest at the start.
Worked example
On a $25,000 loan at 9% over 5 years, adding $100/month pays it off about 11 months early and saves several hundred dollars in interest.
Frequently asked questions
Does the extra go to principal?
It should. Tell your lender the extra is a principal-only payment so it is not just applied to the next bill.
Is there a prepayment penalty?
Most consumer loans have none, but check your agreement — a few charge a fee for paying off early.
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This is an educational estimate, not financial advice. Confirm exact figures with your lender, employer or a licensed advisor.