Find out how much faster you can pay off a loan - and how much interest you'll save - by adding an extra amount to your monthly payment.
Even a modest extra payment applied directly to your loan principal each month can shave years off your repayment schedule and save thousands in interest, because interest is calculated on a shrinking balance.
This calculator runs a month-by-month amortization simulation: each month, interest = balance × (annual rate ÷ 12), and the remainder of the payment reduces the principal, comparing your original payment against your original payment plus the extra amount.
On a $200,000 loan at 6.5% with a $1,264 monthly payment, adding just $200/month extra can save years of payments and a substantial amount of interest.
Extra payments go directly toward principal, which reduces the balance faster than scheduled, cutting both the payoff time and the total interest paid over the life of the loan.
Both help, but consistent smaller extra payments each month tend to save more interest over time since they reduce the balance sooner and more steadily than a single lump sum later.
Not always — some lenders apply extra amounts to future scheduled payments by default. Confirm with your lender that extra payments are applied directly to principal to get the full benefit.