Extra Payment Calculator
See how extra payments can save you money and help you pay off your loan faster.
Loan Prepayment Savings Calculator
Enter your loan details and extra payment amount to see potential savings
Understanding Extra Payments
How Extra Payments Work
Extra payments go directly toward your principal balance. Since interest is calculated on the remaining balance, reducing principal faster means less interest accrues each month, creating a snowball effect that accelerates payoff.
Extra Payment Strategies
- Monthly Extra: Consistent, easy to budget
- Bi-Weekly: 26 half-payments = 13 full payments/year
- Lump Sum: Tax refunds, bonuses, inheritance
- Round Up: Round payment to nearest $100
- Annual Bonus: One extra payment per year
Before Making Extra Payments
- Check for prepayment penalties
- Ensure payments go to principal, not future payments
- Build emergency fund first (3-6 months)
- Pay off higher-interest debt first
- Maximize employer 401k match
Maximum Impact Tips
- Start extra payments early in the loan
- Even small amounts make a difference
- Specify "apply to principal" with lender
- Automate extra payments for consistency
- Reassess budget annually for increases