Calculate your monthly loan payments and see how extra payments can save you thousands.
Loan Payments Calculator With Extra Payments
Select your currency and enter in your loan amount
%
Enter in your interest rate and select if it is yearly or monthly
Enter in your loan duration and select if it is years or months
Enter in your extra monthly payment amount
Month #
Enter in when you started the extra monthly payments
Your Results
Your Estimated Monthly Payment without Extra Payment: 0
Your Extra Monthly Payment: 0
Your Estimated Total Saved with Extra Payments: 0
With Extra Monthly Payments
Estimated Total Interest Paid: 0
Estimated Total Amount Paid: 0
Without Extra Monthly Payments
Estimated Total Interest Paid: 0
Estimated Total Amount Paid: 0
Frequently Asked Questions
How Loan Payments Are Calculated
Loan payments are based on your loan amount, interest rate, and repayment term.
Making extra payments reduces your principal faster, saving you interest and shortening the life of your loan.
How to Use This Loan Payments Calculator
Enter your loan amount, interest rate, and loan term to calculate your estimated monthly payment.
You can also change the extra monthly payment amount and starting month to see how it reduces the total interest and shortens the repayment period.
Is this calculator accurate?
This calculator provides estimates based on standard amortization formulas.
Always consult a qualified professional for personalized advice.
Does this calculator work for all loan types?
This calculator works for most common loans, including personal loans, auto loans, student loans, and mortgages.
Results may vary for loans with variable interest rates or special terms.
What Is Loan Amortization?
Loan amortization is the process of paying off a loan through regular payments over time.
Each payment consists of an interest amount and a principal amount.
Early payments typically include more interest, while later payments reduce more principal.
Why Extra Payments Save Money?
Making extra payments reduces the loan principal faster.
This lowers the amount of interest calculated each month, which can save you a significant amount of money and help you pay off the loan sooner.
Does making extra payments always save money?
In most cases, yes.
Extra payments reduce the outstanding balance, which reduces interest costs.
However, you should check if your loan has prepayment penalties before making additional payments.
Should I make extra payments monthly or annually?
Making extra payments monthly usually saves more money than annual payments because it reduces the principal sooner, lowering the interest calculated each month.
Can extra payments shorten my loan term?
Yes.
Extra payments can reduce the number of months or years needed to repay your loan, helping you become debt-free faster.
Is it better to lower my interest rate or make extra payments?
Lowering your interest rate can save more money overall, but if refinancing is not an option, making extra payments is an effective way to reduce interest and shorten your loan term.
Are extra loan payments applied to principal?
Most lenders apply extra payments directly to the principal, but you should confirm this with your lender to ensure the payment is not applied to future interest instead.
Can I stop making extra payments later?
Yes.
Extra payments are optional.
You can stop or change the amount at any time without affecting your regular monthly payment.
Loan Payment Examples
Example 1: Loan Without Extra Payments
A $100,000 loan at 8% interest for 20 years results in an estimated monthly payment of about $836.
Over the life of the loan, you would pay more than $100,000 in interest.
Example 2: Loan With Extra Monthly Payments
Adding an extra $100 per month to the same loan can shorten the loan term by about 4 years and save over $20,000 in interest.
Example 3: Small Extra Payments
Even an extra $50 per month can reduce the loan term by 1–2 years and save thousands of dollars in interest.
Example 4: Starting Extra Payments Later
Starting extra payments after the first year still reduces interest and shortens the loan term.
Starting earlier provides greater savings.
Example 5: Monthly vs Annual Extra Payments
Spreading extra payments monthly instead of making one yearly payment saves more interest because the principal is reduced sooner.
This calculator is provided for educational purposes only and does not constitute financial advice.
Always consult a qualified financial professional before making financial decisions.