Early Loan Payoff Calculator
Estimate how extra monthly payments change loan payoff time and total interest.
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Method
How it works
The early loan repayment calculation first finds the scheduled payment for the original fixed-rate loan. It then simulates each month, charges interest on the remaining balance and applies the base payment plus the recurring extra amount.
The accelerated schedule stops when the balance reaches zero. Comparing it with the original schedule gives the revised payoff time, months saved and interest saved; penalties and changing rates are excluded.
Common questions
Frequently asked questions
How does the calculator estimate early loan repayment?
It runs the original amortisation schedule and a second schedule with the entered extra monthly payment, then compares their payoff time and total interest.
Does an extra loan payment reduce principal immediately?
In the monthly simulation, interest is calculated first and the remaining payment amount reduces the balance.
Can extra payments shorten the loan term?
Yes. A larger amount applied each month reduces the simulated balance faster and can lower both term and interest.
Can I model a one-off lump-sum repayment?
Not directly. This calculator applies the entered extra amount every month; it does not include a separate one-time payment input.
Not financial advice. This calculator is for general informational purposes only. Check figures independently before making financial decisions.