One Extra Payment Savings Calculator
Example: Current loan balance: 22000 $ · APR: 7 % · Months remaining: 60 · Extra payment/mo: 150 $
| Interest you save | $1,232 |
| Months you cut | 17 |
| New payoff in months | 43 |
| Original total interest | $4,138 |
Worked example
On a $22,000 balance at 7% with 60 months left, adding $150 a month pays the loan off roughly 13 months early and saves around $1,500 in interest. The extra payment attacks principal directly, so every added dollar earns you a guaranteed return equal to the loan’s rate.
Frequently asked questions
Why does paying extra save so much?
Interest is charged on the remaining balance. Extra payments cut that balance immediately, so all the interest that balance would have generated for the rest of the term simply never accrues.
Is there a prepayment penalty?
Most auto and personal loans have none, but some contracts do — check yours before committing. If a penalty exists, weigh it against the interest saved shown here.
Should I pay extra or invest it?
Compare the loan’s rate to your expected after-tax investment return. Paying down a high-rate loan is a guaranteed, risk-free return; for low-rate loans, investing the extra may win. The debt-vs-invest tools help you decide.