Extra Payment Calculator

Every dollar above the scheduled payment goes straight to principal. A smaller balance accrues less interest each month, so more of every future payment reduces principal, which compounds into a much earlier payoff.

It depends on the rate, balance and how early you start. On a 200,000 loan at 6 percent over 30 years, an extra 200 per month clears the loan about nine years early and saves roughly 79,800 in interest.

Both help. A consistent extra each month is easy to budget and starts saving interest right away. A lump sum makes a large one-time dent. The sooner the money goes to principal, the more interest you avoid.

No. On most loans extra payments shorten the term but do not lower the required payment. If you want a lower payment you would need to recast or refinance the loan instead.

No. The figures are estimates to help you compare scenarios. Confirm that your lender applies extra payments to principal and check for any prepayment penalties before you commit.