Finance
Calculator for early loan repayment
Compare how long loan repayment go take and how much interest you go pay, before and after you add extra monthly principal.
Add to workspaceYour numbers
Result dey update as you type; no Calculate button dey. All calculation dey run inside your browser.
Months wey extra payments save
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Compare both repayment plans side by side
| Amount | |
|---|---|
| Months without extra payment | — |
| Interest without extra payment | — |
| Months with extra payment | — |
| Interest with extra payment | — |
| Interest wey you save | — |
Interest before and after extra payment
The bars dey use the larger interest total as their scale. Extra principal dey save interest because the balance smaller and the loan finish sooner.
Repayment comparison
| Case wey you wan compare | Months | Total interest |
|---|
Every month, interest na balance times annual rate divided by 12. After that, payment and any extra money go reduce the balance. The last payment no go pass wetin remain.
Formula
Every month: interest = opening balance × annual rate ÷ 12. Payment go reduce the balance after interest. We dey repeat am until the balance reach zero: first with the scheduled payment, then with payment plus extra principal.
Example wey show the calculation
For balance $200,000 at 3.5% with payment $1,500, e go take 170 months to clear am, with $53,642.99 interest. If you add $200 every month ($1,700 total), e go take 145 months, with $45,320.90 interest. Na 25 months earlier and $8,322.09 less interest.
Where e fit work and limits
Fixed rate, fixed payments made on time, extra payments applied to principal with no prepayment penalty and no fees. If scheduled payment no cover monthly interest, balance grow and loan never pay off on that payment; calculator flag that case.
Questions wey people dey ask often
Why small extra payment dey save plenty interest?
E dey reduce the balance every month, so every later month go gather interest on a smaller amount. This effect dey build throughout the loan.
Wetin if my payment no cover interest?
Then the balance go dey grow instead of reducing, and that payment no go clear the loan. Increase the payment above the first month interest to make progress.
E better to pay extra abi refinance?
E depend on the rate. Extra payments dey help for any rate; refinancing fit help if a lower rate dey available. Use the refinance calculator to compare both.
The extra payment dey go to principal?
For this model, yes: all the extra money dey go to principal for the month wey you pay am. Some lenders dey handle extra payments differently; confirm how your own lender dey do am.
Wetin if I pay one lump sum instead of monthly extra?
We no model am here. One large payment fit reduce the balance at once, but when you pay am go affect how much you save.
Other tools wey relate to dis
- Calculator for loan repayment — scheduled payment and amortization
- Calculator for refinancing — lower rate instead of extra payments
- Calculator for clearing credit card debt — the same idea at credit-card rates
Results na estimates; dem no replace advice from qualified professional.