Loan Savings Calculator
Calculate how much you can save on your loan with extra payments. Estimate interest savings, reduced loan terms, and total cost differences.
Step 1: Loan Details
Understanding Loan Terms
A longer loan term reduces monthly payments but increases total interest paid. A shorter term increases monthly payments but saves on total interest.
Step 2: Savings Options
About Extra Payments
Making extra payments toward your principal can significantly reduce total interest paid and shorten your loan term. Even small extra payments can lead to substantial savings over time.
Loan Savings Results
Total Interest Savings
Loan Term Comparison
| Extra Payment | New Term | Interest Saved | Total Savings |
|---|
Interest vs Principal Breakdown
Loan Payment Formula
M = P [ r(1+r)^n ] / [ (1+r)^n – 1]
Where M is the monthly payment, P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the number of payments (loan term in months).
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