Works for car loans, personal loans and student loans. Add an extra payment to see how much sooner you're done.
Monthly payment
Total interest $5,415
| With your extra payment | $606.91 |
|---|---|
| Paid off in | 49 months |
| Interest saved | $1,089 |
The monthly payment is set so the balance reaches zero on the last scheduled month. Anything you add beyond it lowers the balance early, and interest is charged on that smaller balance from then on. On a $25,000 loan at 8% for five years, adding $100 a month finishes it 11 months early.
Fixed-rate installment loans use the amortization formula: the payment stays the same each month, with the interest part shrinking and the principal part growing as the balance falls.
Yes. Every extra dollar goes straight to principal, so less interest builds up the next month. Even small extra payments can cut months off the loan. Check that your lender has no prepayment penalty and applies extra money to principal.
APR (annual percentage rate) includes the interest rate plus certain fees, expressed as a yearly rate. It is the better number for comparing loan offers. Enter the interest rate here to get the payment.