The payoff change this calculator isolates
Estimate payoff time and interest change from recurring principal payments.
Start from today's principal and remaining term
Use the current principal and remaining term.
Confirm extra funds go to principal.
Check for prepayment restrictions.
Run an extra amount the monthly budget can sustain
Send a recurring extra amount to principal
Run the current schedule with no extra payment, then add the amount your monthly budget can sustain. Compare payoff time and interest, but verify that the servicer will apply the money to principal rather than advance the next due date. Recalculate after any rate or balance change.
Read time saved beside interest saved
The tool simulates monthly amortization using a fixed rate and constant extra payment.
Prepayment Penalties: Check Before Paying a Loan Early covers the controlling document terms and questions outside this result.
Confirm how the servicer applies extra money
- Current principal rather than the original loan amount
- Annual rate and remaining scheduled months
- The servicer's extra-payment allocation instructions
- Any prepayment charge or payoff restriction
Loan rules outside this amortization model
- Daily-interest timing
- Variable rates
- Servicer allocation rules