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.