Extra Payment and Early Payoff Calculator

See how much sooner you’ll pay off your loan, and how much interest you’ll save, with extra payments.

$
$
Principal and interest only, no escrow.
$
$
Like a tax refund, paid each year.
$
Fractions and decimals both work.
–
Interest Saved
Without extra
With extra
Time saved
Interest without extra
Interest with extra
New Payoff

Payoff Plans

Items you add are saved in this browser.

PlanExtra/Mo.PayoffInterestSavedRemove

How Extra Payments Pay Off a Loan Early

Every extra dollar goes straight to principal, so next month's interest is figured on a smaller balance. The savings compound: the earlier the extra payment, the more interest it saves.

Months left at a payment P: n = −ln(1 − r × B ÷ P) ÷ ln(1 + r)

B is the balance and r the monthly rate (annual ÷ 12). With extra payments the page runs the full month-by-month schedule both ways and compares them.

Worked Example

Tips

Tell your servicer the extra is for principal, and check your statement to make sure it was applied that way. Paying extra makes most sense when your loan rate is higher than what you'd earn on the money elsewhere and you already have an emergency fund. Some loans have prepayment penalties; most U.S. mortgages made since 2014 don't.