Loan Amortization + Extra Payment Calculator
See how extra payments reduce interest and payoff time by generating an updated amortization schedule.
Last reviewed by the Radiatus Cloud team
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See how extra payments shorten a loan
Paying more than the required amount on a loan cuts both the interest and the time to clear it. This calculator generates an updated amortization schedule showing how extra payments reduce the total interest and the payoff time.
Why extra payments punch above their weight
An extra payment goes entirely to principal, reducing the balance that all future interest is charged on, so it saves interest for the entire remaining term. That is why a modest regular extra payment can shave years off a loan and save a large amount of interest, far more than the extra payments themselves total. Seeing the updated schedule alongside the original makes the saving concrete, and often surprisingly large.
The payoff of paying extra
This is an estimate for planning from the figures you enter, not financial advice, and real outcomes depend on rates and rules that change. Confirm anything important with the relevant institution or a qualified adviser. The calculation runs entirely in your browser, so your financial figures are never uploaded.
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Frequently Asked Questions
How does an extra payment save interest?
It goes entirely to principal, reducing the balance that future interest is charged on, so it saves interest for the whole remaining term.
Why is the saving larger than the extra paid?
Because each extra payment reduces the balance for years of future interest charges, so the accumulated interest saved exceeds the extra payments themselves.
Does it shorten the loan too?
Yes. Keeping the regular payment the same after paying extra clears the loan sooner, which the updated schedule shows in months saved.
When do extra payments help most?
Early in the loan, when the balance and the remaining term are largest, so the interest saving is greatest.
Is this financial advice?
No. It is an estimate. Confirm any prepayment terms with your lender.
Privacy & Security
Calculated locally in your browser. Use as an estimate; lender calculations may differ.
How to Use
Enter loan details and extra payment to estimate savings and earlier payoff date.
Disclaimer: This tool is provided "as is" without warranty of any kind. Results are for educational and utility purposes.
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