Extra Payment Calculator

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:
This free, online financial calculator (c) 2010 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.