Extra Payment Calculator
Enter your loan balance, interest rate and the years left, then add an extra amount for every month and, if you like, a one-time lump sum today. The calculator shows the interest you would save, how much sooner the loan is repaid, your new monthly payment and a year-by-year table of the balance with and without the extra. It works for mortgages, car loans and personal loans with a fixed rate. Everything runs in your browser.
| End of year | Balance, regular | Balance, with extra |
|---|---|---|
| 1 | 197,543.98 | 195,076.86 |
| 2 | 194,936.47 | 189,850.08 |
| 3 | 192,168.14 | 184,300.92 |
| 4 | 189,229.06 | 178,409.50 |
| 5 | 186,108.71 | 172,154.71 |
| 6 | 182,795.91 | 165,514.13 |
| 7 | 179,278.77 | 158,463.99 |
| 8 | 175,544.71 | 150,979.00 |
| 9 | 171,580.34 | 143,032.36 |
| 10 | 167,371.45 | 134,595.58 |
| 11 | 162,902.97 | 125,638.44 |
| 12 | 158,158.88 | 116,128.85 |
| 13 | 153,122.19 | 106,032.72 |
| 14 | 147,774.85 | 95,313.89 |
| 15 | 142,097.69 | 83,933.95 |
| 16 | 136,070.38 | 71,852.11 |
| 17 | 129,671.31 | 59,025.09 |
| 18 | 122,877.57 | 45,406.93 |
| 19 | 115,664.81 | 30,948.84 |
| 20 | 108,007.17 | 15,598.99 |
| 21 | 99,877.23 | 0.00 |
| 22 | 91,245.86 | 0.00 |
| 23 | 82,082.12 | 0.00 |
| 24 | 72,353.17 | 0.00 |
| 25 | 62,024.17 | 0.00 |
| 26 | 51,058.10 | 0.00 |
| 27 | 39,415.67 | 0.00 |
| 28 | 27,055.16 | 0.00 |
| 29 | 13,932.27 | 0.00 |
| 30 | 0.00 | 0.00 |
The regular payment comes from the standard loan formula, payment = balance x r / (1 - (1 + r) to the power of minus n), with r the monthly rate and n the number of months. The extra amount is added to every payment and goes straight to the balance, so each month less interest is charged. The last payment is trimmed to what is still owed. This assumes a fixed rate, payments at the end of each month and no prepayment fee. Check with your lender that extra payments are applied to principal and not held for the next due date. Everything is worked out in your browser.
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Math & MoneyAbout the Extra Payment Calculator
A fixed-rate loan has a regular payment worked out from the balance, the monthly rate and the number of months: payment = balance x r / (1 - (1 + r) to the power of minus n), where r is the yearly rate divided by 12. Each month part of the payment covers the interest on the balance and the rest reduces it. When you pay extra, all of the extra reduces the balance, so next month's interest is smaller and more of the regular payment goes to principal. That compounding effect is why a small extra amount saves so much. For a 200,000 loan at 6% over 30 years the regular payment is 1,199.10 and the total interest is 231,676.38. Adding 200 a month pays the loan off in 21 years, which is 9 years sooner, and cuts the interest by about 79,800. A one-time lump sum of 20,000 at the start saves about 77,800 and shortens the loan by 6 years and 9 months. The model assumes a fixed rate, monthly payments at the end of each month and no prepayment penalty. Ask your lender whether extra payments are applied to the principal straight away.
How much interest do extra payments save?▾
It depends on the balance, the rate and the term. On a 200,000 loan at 6% for 30 years, an extra 200 a month saves about 79,800 in interest and takes 9 years off the loan.
Is it better to pay extra every month or one lump sum?▾
The earlier the extra money reduces the balance, the more interest it saves. A lump sum now saves more than the same total spread over many years, but regular extras are easier for most budgets.
Do extra payments lower my monthly payment?▾
Not on a standard loan. The regular payment stays the same and the loan ends sooner. You would need to ask your lender to recast or refinance the loan to lower the payment.
Should I pay extra or invest the money?▾
Paying extra gives a guaranteed return equal to your loan rate. Investing might return more or less, with risk. The right choice depends on your rate, your goals and your other debts, so this tool only shows the effect of the extra payment.
Is my data uploaded?▾
No. The calculation runs in your browser and nothing you enter is sent anywhere.