maratoolHow much do extra loan payments actually save?
Three numbers from your statement plus one what-if: the extra amount. Out come months cut and dollars saved.
Every extra dollar you put on a loan goes straight to principal, and principal is what interest is charged on. The effect snowballs quietly: a smaller balance this month means less interest next month, which means even more of your regular payment hits principal. The Loan Payoff Calculator turns that loop into two concrete numbers, time saved and interest saved.
How it works
- Current balance, interest rate, monthly payment: all three are on your loan statement.
- Extra payment per month is the what-if.
- The simulator runs both plans month by month and reports payoff time and total interest for each, plus the difference.
Worked example
$20,000 at 8% with a $400 payment takes 62 months and costs $4,409 in interest. Add $100 a month and it's done in 47 months with $3,339 of interest: 15 months earlier, $1,070 kept. The savings are not linear in the extra amount, so it's worth trying a few values; going from $100 to $200 extra saves less than the first $100 did.
Check the fine print first
US mortgages, auto loans, and federal student loans can be prepaid without penalty. Some personal loans charge a prepayment fee that eats part of the savings, so compare the fee against the interest figure this calculator reports before committing. If your loan is a mortgage and rates have dropped, run the Mortgage Refinance Calculator too; sometimes a new rate beats extra payments.