Extra Payment Calculator

What is the Extra Payment Calculator?

The Extra Payment Calculator shows how much interest you save when you pay off your loan faster than agreed. Regular extra payments or a lump sum reduce the loan principal, resulting in less interest accumulating for the remaining time.

The calculator is free, works in your browser without registration, and shows the result immediately when you change the values. The calculations are done on your device, and the information you enter is not sent anywhere.

Formula and Calculation Principle

Monthly payment = L × r / (1 − (1 + r)⁻ⁿ), where L is the loan, r is the monthly interest rate, and n is the number of months. The calculator processes the loan month by month, reduces the extra payment from the principal, and compares the total interest to the regular payment schedule.

Practical Example

A loan of $200,000, a 3.5 percent interest rate, and a 25-year loan term: when you pay an extra $200 per month, you save tens of thousands of euros in interest compared to the regular schedule. With default settings, the calculator gives a result of: Interest savings $26,186.51.

Who is the calculator suitable for?

For anyone paying a mortgage, car loan, or consumer loan who is considering whether to put extra money towards the loan or invest it. With the calculator, you can see the saved interest in euros.

Tips and Considerations

• Make extra payments as early as possible, as this is when the principal is largest and the interest savings are greatest.
• Compare the interest to the return you would get from saving or investing.
• Do not deplete your emergency fund: keep at least 3–6 months of expenses in cash.