Find out how many months you can cut from a loan by paying extra every month.
| Input | Result |
|---|---|
| $25,000 at 7%, 5 yrs left, +$100/mo | 49 months instead of 60 · $939 interest saved |
| $15,000 at 9%, 4 yrs left, +$150/mo | 37 months instead of 48 · $760 interest saved |
| $8,000 at 5%, 3 yrs left, +$50/mo | 31 months instead of 36 · $163 interest saved |
Most do for simple interest loans, but some charge prepayment penalties or apply extra amounts to future instalments instead of principal, always confirm with your lender.
A lump sum and extra monthly payments both reduce the principal; a lump sum today saves even more interest because it starts working earlier.
Because the extra payments themselves are money you pay anyway, the saving is only the interest you no longer owe, not the extra principal.
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Source-dependent figures are reviewed when the cited issuer publishes an update. Worked examples show the formula applied to the listed inputs; interactive results are calculated in your browser.
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