Extra Payments
See how an extra amount each month, or a one-time payment, shortens the loan and cuts interest.
Pay off sooner
Estimated interest saved
Paid off 4 years 5 months sooner, in 25 years 7 months.
| Interest as scheduled | $1,001,457 |
|---|---|
| Interest with extra payments | $827,137 |
| Time saved | 4 years 5 months |
An indicative figure for planning. Not a lender quote and not an offer of credit. Sidney Manzo, CA DRE #01108914, licensed in California.
RE/MAX Dream Properties (ASLG Inc), CA DRE #02142193
How this works
Every extra dollar goes to principal
The tool runs the loan month by month. Each month interest is charged on the balance, the regular payment covers that interest and some principal, and any extra amount goes straight to principal.
It compares that schedule with the regular one to show the months and interest saved.
Ask your loan servicer how to send extra payments so they apply to principal, and whether your loan has prepayment terms.
Questions
How this estimate works
Does the monthly payment go down?
No. On a fixed loan the required payment stays the same; the loan ends sooner.
Is a one-time payment or a monthly extra better?
It depends on timing. Money paid earlier saves more interest. Try both in the tool with your numbers.
Should I pay extra or save the money?
That depends on your rate, savings, other debts and goals. A financial professional can help you weigh it.