Tool

Early repayment calculator

Enter your current loan and an extra monthly payment: you'll see how many months sooner you finish and how much interest you save.

Interest savings

—

Paying extra every month until paid off

Months remaining without extra payment—

Months remaining with extra payment—

Interest without extra payment—

Interest with extra payment—

You finish sooner by—

Assumptions & method

Month-by-month simulation: interest on the outstanding balance (annual rate ÷ 12); the extra payment is applied entirely to principal.
Requires the monthly payment to cover at least the period's interest; otherwise the debt grows and this is flagged.
Check in your contract that early payments are applied to principal without a penalty; some loans charge one.
Informational estimate; the actual cutoff depends on the dates and terms of your contract.

FAQ

The essentials, in brief

Is it always worth paying down principal?

Almost always, when the loan rate is higher than what you'd earn by investing that money: the interest saved is a guaranteed return at the loan rate. The exception is loans with a prepayment penalty or very low rates.

What happens if my payment doesn't cover the interest?

The debt grows instead of shrinking (negative amortization). The calculator warns you: in that case the priority is to renegotiate the rate or raise the payment.

Does paying extra lower my monthly payment or shorten the term?

Here we model a shorter term (same monthly payment, you finish sooner), which saves the most interest. Some banks instead offer to lower the monthly payment while keeping the term.

Next step

Tell us about your deal

Tell us how much you need and what collateral you can offer. We'll tell you frankly whether it's viable and how we'd structure it.

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