Loan Amortization Calculator With Extra Payments
See how paying a little extra each month shortens your loan and cuts the total interest, compared with sticking to the standard schedule.
Your numbers
Your results
Loan Amortization Calculator With Extra Payments by TheCalcTools
How the Loan Amortization Calculator works
Enter the loan amount, interest rate and term. The calculator finds the standard monthly payment, then adds your extra amount to every payment and replays the loan month by month: interest on the balance first, and everything else reducing the balance.
Extra money goes straight to principal, so the next month’s interest is lower and the loan ends sooner. The difference between the standard total interest and the interest with extra payments is the saving. Check that your lender applies extra payments to principal and charges no early-payment penalty.
The formula
Worked example
A $200,000 loan at 6.5% over 30 years, with $150 extra each month:
| Loan amount | $200,000 |
|---|---|
| Rate and term | 6.5% for 30 years |
| Extra payment | $150 a month |
- Standard payment = $1,264.14; standard total interest ≈ $255,089.
- With $1,414.14 paid every month, the loan is cleared in 22 years, 5 months, which is 7 years, 7 months early.
- Interest drops to $180,298, a saving of $74,791.
Result:
| Regular monthly payment | $1,264.14 |
|---|---|
| Paid off in | 22 years, 5 months |
| Time saved | 7 years, 7 months |
| Total interest with extra payments | $180,298 |
| Interest saved | $74,791 |
Frequently asked questions
What is loan amortization?
Amortization is paying off a loan gradually through regular payments. Each payment covers the interest due that month and reduces the balance with the remainder, so the interest part shrinks over time.
Do extra payments always save money?
Usually, if they go to principal and your loan has no prepayment penalty. Compare the interest you save with what the extra money could earn elsewhere, such as paying off a higher-interest card first.
Is it better to pay extra monthly or in one lump sum?
Money paid earlier cuts more interest, so a lump sum paid now saves more than the same amount spread over time. Regular extras are easier to keep up.
Does this include tax and insurance?
No. For a home loan with tax and insurance, see the mortgage payment estimator.
Sources and further reading
Related calculators
More in Loans & Debt · All calculators
This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.