Accelerated Extra Payment Calculator

Amount of Loan?:
Total Periods?:
Annual Rate?:
Increase Starts at Period? (#):
Extra Amount Paid?:
Payment Period?:
Compounding Period?:
Payment Method?:
Amortization Method?:
Periods To Pay Off:
Total Interest Saved:
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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.

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$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 €

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).

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Do you need to calculate the interest savings due to random, extra payments on a loan? If so, then download and try AmortizeIT! v4.0
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