LoanMath

Loan Amortization Schedule with Extra Payments

Extra payments shorten the schedule and cut interest.

Extra-payment scenarios run locally — no account needed
Loan details
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Your payment breakdown appears here

Fill in the loan details and press Calculate — the monthly payment, total interest and schedule will render right on this page, with nothing sent to any server.

How to use

Adding a little extra to your monthly payment shortens the loan and cuts the interest you pay. This calculator models the two common ways to pay extra: a fixed additional amount every month, or a single lump paid directly toward principal.

How to use

  1. Enter your current balance, APR and months remaining.
  2. Type the extra amount you can add each month.
  3. Press Calculate to see the new term and the interest saved.
  4. For a lump-sum prepayment, use the Lump prepay field instead.

Example

A $20,000 loan at 6.5% with 60 months left has a normal payment of about $391. Add $150 extra each month and the loan clears in roughly 42 months instead of 60, saving about $1,100 of interest. Adding $300 instead clears it in about 32 months and saves close to $1,670.

Formula

The amortization loop re-runs with payment = regular payment + extra until the balance hits zero. The shorter the resulting term, the more interest you keep.

Extra monthly payments

Adding a fixed amount every month compounds quietly: the payment stays predictable and the principal falls faster each period. The table above shows the effect at three levels on a 5-year loan.

One-time principal payment

A single lump toward principal today reduces the balance immediately, so it saves more interest than the same total spread over later months.

A lump prepayment today reduces the balance immediately, so it saves more interest than the same total spread over later months. On the example above, a single $2,000 lump toward principal shortens the term by about 6 months and saves roughly $700 — you get the benefit instantly instead of over the remaining years.

Savings at a glance

Extra per monthNew termInterest saved
$10047 monthsabout $820
$15042 monthsabout $1,100
$30032 monthsabout $1,670

Even small amounts help because the extra goes straight to principal, and principal is what interest is charged on.

FAQ

Should extra payments go to principal?

Yes — extra paid usually reduces principal directly, which is what saves the interest. Confirm with your lender that there is no prepayment penalty.

Lump or monthly — which wins?

A lump now saves more total interest because it cuts the balance earlier. Monthly extra is easier to sustain from cash flow.

Is this the same as the prepayment tool?

Yes — this page covers both modes in one place: monthly extra and one-time principal.

Does it work for mortgages?

Yes, and the dollar savings are largest on long mortgage terms.

Reviewed by the LoanMath editorial team

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