Extra Payment Calculator
Calculate how much time and interest you can save by making extra payments on your loan. Determine optimal payment strategies to pay off your mortgage, car loan, or personal loan faster.
Step 1: Loan Details
Understanding Loan Terms
Making extra payments early in your loan term has the greatest impact on interest savings, as more of your early payments go toward interest rather than principal.
Step 2: Extra Payment Details
About Extra Payments
Even small extra payments can significantly reduce your loan term and total interest paid. For example, adding £100/month to a £250,000 mortgage at 4.5% can save over £30,000 in interest.
Savings Results
Total Interest Savings
Payment Strategy Comparison
| Payment Strategy | Extra Payment | Loan Term | Interest Savings |
|---|
Payment Breakdown
Extra Payment Formula
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n – 1]
Where P = Principal loan amount, r = Monthly interest rate (annual rate ÷ 12), n = Total number of payments (years × 12). Extra payments directly reduce principal, compounding savings over time.
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