Live tool
Loans
Loan Prepayment / Early Payoff Calculator
See how much interest you save and how many years you shave off your mortgage or loan by paying extra.
Inputs
Remaining principal balance
Additional principal paid monthly
Results
Total interest savings
—
Time shaved off loan—
New total interest paid—
Original total interest—
Strategy—
Extra payments are applied directly against your outstanding principal balance.
How this calculator works
Models interest cost savings and loan tenure reduction when making additional monthly or lump-sum principal prepayments.
Formula
Amortization recalculated monthly with extra payment deducted directly from outstanding principal.
Worked Example
A $200,000 loan at 6.5% interest for 30 years ($1,264 regular EMI). Adding $200 extra monthly prepayment cuts loan duration by 7 years and saves $63,400 in interest.
Assumptions
- Prepayments are credited 100% directly toward loan principal balance.
- No prepayment penalty fees are charged by the lender.
Limitations
- Some lenders limit prepayment frequency or require specific written instructions to apply extra funds to principal.
Disclaimer: Educational estimate only. Check if your lender charges prepayment penalties. See our Disclaimer.