Loan Prepayment Calculator
See how extra payments can reduce your loan term and total interest paid
Loan Details
$25,000
7.5%
5 years
$100
Prepayment Impact
Standard Payment
Monthly Payment
$0
Total Interest
$0
Total Paid
$0
Payoff Time
0 years
With Extra Payments
Monthly Payment
$0
Total Interest
$0
Total Paid
$0
Payoff Time
0 years
Your Savings
Interest Saved
$0
Time Saved
0 years 0 months
New Payoff Date
—
Payment Breakdown
Principal
$0
Total Interest (Standard)
$0
Total Interest (With Extra)
$0
About This Prepayment Calculator
This calculator shows you how making extra payments toward your loan principal can help you pay off your loan faster and save money on interest. Even small additional payments applied directly to your principal can significantly reduce your loan term and total interest paid.
How Prepayments Work
When you make extra payments toward your loan:
- The additional amount is applied directly to your principal balance
- With a lower principal, less interest accrues each month
- You pay off the loan faster than the original term
- You save money by reducing the total interest paid over the life of the loan
Tips for Making Extra Payments
- Check if your lender charges prepayment penalties
- Specify that extra payments should be applied to principal
- Consider making bi-weekly payments instead of monthly
- Apply windfalls (tax refunds, bonuses) to your loan principal
- Set up automatic extra payments to ensure consistency