Loan Prepayment Calculator
See how much sooner you'd be debt-free, and how much interest you'd save, by paying extra monthly, yearly, once or biweekly.
Pay extra
Added to every monthly payment.
Debt-free
in 17½ years
12½ years sooner, $179,759 less interest.
- You pay
- $2,396/mo
- Total paid
- $502,874
- Without extra
- in 30 years
An estimate from the numbers you enter; real loan terms, fees and taxes vary. Not financial advice. Terms
How these numbers are estimatedFixed rate, extra money straight to principal
Extra payments are applied directly to principal every month, starting from your next scheduled payment.
Interest accrues on the remaining balance at a fixed rate. Real loans may differ (daily interest, fees, escrow, rate changes, or lenders that apply extra funds to future payments rather than principal). Treat the payoff date and savings as estimates, not guarantees, and confirm any prepayment penalty with your lender.
How this works: Method,
How this works
Method
The regular payment is the standard fixed-rate amount, P·r / (1 − (1 + r)^−n) with r the annual rate ÷ 12, and the loan is paid down month by month with and without your extra payment, which goes straight to principal. Biweekly pays half that payment every 14 days, 26 times a year, with interest at the annual rate ÷ 26; the interest saved is the difference between the two schedules.
Limits
An estimate from the numbers you enter; real loan terms, fees and taxes vary. Not financial advice.
Privacy
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Changes
- Added a printable report.
- Very long terms now get a clear limit of 50 years instead of slowing the page down.
- Redesigned: a balance chart with and without extra payments, your payoff date, and a new biweekly option.
- Results now update as you type, with no Calculate button.
- First published.
Frequently Asked Questions
What are the benefits of making extra loan payments?
Extra payments go directly toward reducing your principal balance, which means less interest accrues over the life of the loan. This can save you thousands of dollars in interest and shorten your loan term by years. For example, adding $200/month to a $300,000 mortgage at 6.5% can save over $80,000 in interest and pay off the loan 6+ years early.
Are there prepayment penalties on loans?
Some loans include prepayment penalties that charge you a fee for paying off the loan early. These are more common in older mortgages and certain types of personal loans. Check your loan agreement or contact your lender before making extra payments. Most conventional mortgages originated after 2014 do not have prepayment penalties due to federal regulations.
What is the difference between paying extra toward principal vs interest?
When you make an extra payment, it should be applied to principal, not interest. Reducing principal directly lowers the amount of interest charged in subsequent periods. Always confirm with your lender that extra payments are being applied to principal, as some lenders may apply them to future payments instead.
How do biweekly payments help pay off a loan faster?
Biweekly payments split your monthly payment in half and pay every two weeks. Since there are 52 weeks in a year, you make 26 half-payments, which equals 13 full monthly payments instead of 12. This extra payment per year goes toward principal and can shave several years off a 30-year mortgage. Pick "Biweekly" above to see the exact effect on your loan.
Should I prepay my loan or invest the extra money?
This depends on your loan interest rate versus expected investment returns. If your loan rate is higher than your after-tax investment return, prepaying saves more. If investment returns exceed your loan rate, investing may be better financially. Also consider factors like risk tolerance, tax deductions on mortgage interest, and the guaranteed return of debt reduction.