Loans & borrowing

Extra-Payment Loan Payoff Calculator

See how extra principal payments can change your payoff date and interest cost. Compare a monthly extra budget with paying the same annual amount once a year.

Current loan

Plan your payoff

Loan type Current principal balance ($) Nominal annual interest rate (%) Regular monthly payment ($) Next payment date

Use the remaining principal and principal-and-interest payment, excluding insurance, escrow and service fees. Enter the interest rate, not a fee-inclusive APR.

Extra principal payments

Monthly extra budget ($) Plan for the revised schedule One-time lump sum ($) Lump sum at payment number

Monthly extras start with the next payment. The annual plan pays 12 times the monthly budget at payments 12, 24, 36 and so on. The lump sum is added on the selected payment date after that month's regular and recurring extra payments.

Your inputs stay in this browser and are not saved.

Monthly versus annual extra payments

Equal planned yearly extra budget; actual extras stop when the loan is paid off.
Plan	Payoff date	Months	Interest	Total paid	Extra principal paid

Revised amortization schedule

Amounts in US dollars. The final payment is capped at the amount due.
Payment	Date	Opening balance	Interest	Regular paid	Recurring extra	Lump sum	Principal repaid	Balance

How extra payments shorten a loan

Each month, interest is calculated on the opening principal at the nominal annual rate divided by 12, rounded half-up to cents. The regular payment pays that interest first and reduces principal with the remainder. Extras then reduce principal, so later interest charges can be smaller. The regular payment stays unchanged; this calculator does not recast the loan.

The baseline uses your entered balance and payment until the balance reaches zero. Months saved and interest saved compare your selected plan with that baseline. The same declining-balance engine handles all three loan types; the explanation reflects the selected loan.

Dates and payment assumptions

The next payment date represents the end of a full monthly interest period. Later dates use the same day of the month, capped at month-end when that day is unavailable. For example, January 31 is followed by February 28 or 29 and then March 31. Daily-interest and irregular-date loans can produce different results.

The regular payment must exceed the first month's interest and repay the baseline within 1,200 months. Extra payments never make the balance negative. A lump sum scheduled after payoff is not applied. Setting the monthly extra budget and lump sum to zero reproduces the baseline.

Check how your lender applies extra money

Confirm that additional amounts reduce principal rather than simply advancing your next due date. Precomputed-interest loans, variable rates, balloon loans, penalties and fees need a different calculation. This tool excludes them and estimates interest savings only.

Sources: CFPB: Interest versus principal payments and CFPB: Prepayment penalties.