Amount of Loan?:

Total Months?:

Annual Rate?:

Periodic Payment?:

Increase Starts at Month? (#):

Extra Amount Paid?:

Months To Pay Off:

Total Interest Saved:

Prepaid Principal (X-Pmts Total):

(c) 2012 Pine Grove Software, LLC All rights reserved.

The accelerated payment calculator will calculate the effect of making extra principal payments. A very small extra principal payment made along with a regular payment can save the borrower a large amount of interest over the life of a loan, particularly, if those payments are started when the loan is relatively new.

For example, assume that you have taken out a loan for $130,000, for 360 monthly periods with an annual interest rate of 7 3/4%. If, with the 49th payment, you start to pay an extra $225, you will save $75,901.42 in interest payments and the loan will be paid off in 234 payments instead of the original 360 payments.

It is very easy to quickly calculate many different scenarios. Note that the higher the interest rate, the greater the savings for any extra payment amount. Also, for a normal amortizing loan, the interest savings will be greater the sooner the extra payments start. That is, you will save a lot more in interest if you pay an extra $50 a month for the last 20 years than if you pay an extra $100 a month for the last 10 years.

As with many of our other calculators, this calculator will also solve for an unknown input. For example, if you want the calculator to calculate the regular monthly payment, enter '0' (zero) for the "Periodic Payment" and a non-zero values for "Amount of Loan", "Total Months", and "Annual Interest Rate".

If you do not enter a '0' value, the calculator will use your inputs. This allows you to use any payment amount that you need.

Styles:

plain

plainer

zip zilch

Currency

$1,234.56

$1.234,56

£1,234.56

1,234.56

Conventions:

€1,234.56

€1.234,56

1 234,56 €

1.234,56 €

Click on desired currency convention or style to change.

Update 09/01/2012: New!: Now with printable payment schedule showing your extra payments applied to principal. Also added three charts to aid in visualizing cash flow.

This extra payment calculator is used for calculating the interest saved on a loan after extra payments are made. The reduction in the number of total payments is also calculated. Please click on the above "Help" button for details.

Here's an easy to understand, but detailed article discussing how to reduce your loan carrying costs i.e. save interest expense.

If you weren't looking for an extra payment calculator, here is our online loan calculator that will calculate the normal payment or loan amount for you (as well as the term or interest rate).

note: "Extra payment" in some ways is a misnomer. The payment is extra only in the sense the amount is not due at the time the extra principal payment is being paid. That is, the borrower is paying more than what is required, so in that sense it is "extra". But in a larger sense, it is not "extra". The "extra payment" is being used to reduced the principal loan balance. The borrower owes that money, so in that sense, the "extra" is not "extra" but rather just "early". Paying what is owed early, is what results in the interest savings.

Likewise, our charts show "prepaid principal". Prepaid principal is the principal paid early by the extra payments.

You may link to this page using this HTML code. Just copy and paste:

<a href="http://www.pine-grove.com/online-calculators/extra-payment-calculator.htm" title="Pine Grove Software's Free Financial Calculators">Online Extra Payment Calculator</a>

Note: This payment schedule calculator lets you set the dates.

Buying a car? Our car loan calculator considers trade-ins or down payment amounts.

Mortgage Planning? You work with six variables including price and deposit needed with this mortgage loan calculator

Save: Pay ½ the monthly payment twice monthly. Calculate your savings & compare loans with our biweekly loan calculator

Structure a Loan: Design a loan to meet your needs with this balloon payment calculator

Have a funding shortage: Plan cash flow with this bridge loan calculator

Here's a new version of this calculator (& website!)

that's ready for you to use.

that's ready for you to use.

Calculations Grouped by Function

New & Popular Calculators

- Amortization Schedule — show/print payment schedule
- Auto Loan — supports optional trade in or deposit
- Budget — income & expense allocation
- Balloon Loan — structure loan with balloon
- Debt Adviser — evaluate 4 debt elimination plans
- Goal Planning — design both savings & spending needs
- Loan calculator — solve for any unknown
- Mortgage Calculator — solves for 6 variables
- Net Worth — assets minus liabilities
- Value of an Annuity — present value of cash flow
- Savings Calculator — calculate 4 unknowns

Time Value of Money Tutorials

- One loan multiple borrows — setup construction loan
- Structured loan — skipped or stepped payments
- Special payment series — initially only interest paid
- Biweekly payments — save interest
- Audit loan balance — w/ optional irregular payments
- ARM — loan with any date interest rate changes
- Buying mortgages? Calculate mortgage's present value.
- Over 20 Other Step-by-Step Guides
- Video Tutorials

Home
Site Help Site Map
©
Pine Grove Software, LLC, All Rights Reserved. Privacy Policy Contact Us
Store Blog