Loan Prepayment Savings Calculator
If you make extra payments (prepayment) in the middle of the term, see how much interest you save and how many months sooner the loan ends.
Loan details
Extra payment (prepayment)
Interest is charged on the remaining balance each month — extra payments reduce the principal, so the interest falls. Prepayment penalty or fees are not included in this calculation; confirm with your bank. Estimated calculation, not financial advice.
How to use
- Enter the loan amount, annual rate and term in the Loan details section.
- Add an optional one-time extra payment and the month it is made.
- Add an optional extra amount with each monthly installment.
- Press Calculate Benefit to see interest saved, term reduction and the new payoff date.
Tips
- One-time payments early in the term save more interest than the same amount paid later.
- Check your loan agreement for prepayment penalties — a fee can eat into the saving.
- Even a small extra amount with each installment shortens the term noticeably over the years.
Related tools
- Loan vs Investment Calculator — Compare prepaying your loan with investing your monthly surplus and see which strategy wins.
Frequently Asked Questions (FAQ)
What does the loan prepayment calculator show?
How much interest you save, how many months sooner the loan ends, and the new payoff date when you make extra payments during the term.
What inputs does the prepayment calculator need?
Loan amount, annual rate, term, an optional one-time extra amount with the month it starts, and an optional extra amount with every installment.
How is the saving calculated?
Interest is charged on the remaining balance each month, so extra payments shrink the principal and the interest falls with it.
Is this financial advice?
No. It is an estimated calculation; confirm prepayment terms and any penalties with your bank before acting.