See how an extra monthly payment changes payoff time and total interest on a fixed-rate loan.
Assumes the current remaining term uses a standard fixed-rate amortizing payment and all extra payment goes directly toward principal.
Interest is charged on the outstanding balance. An extra principal payment lowers that balance faster, which can reduce interest in later months and bring the payoff date forward.
Some loans have prepayment penalties, special payment allocation rules or variable rates. Confirm that extra payments are applied to principal before relying on a payoff strategy.
This calculator assumes the extra amount is applied directly to principal each month.
At a 0% interest rate there is no interest to save, although extra payments can still shorten the payoff time.
No. Check your loan agreement for any fee or restriction on early principal payments.