See how extra payments can shave years off your loan and save you thousands.
Every extra dollar you put toward your loan principal reduces the balance that accrues interest. Over time, this creates a compounding savings effect. Even an extra $50 or $100 per month can shave years off a loan and save thousands in interest.
The formula for calculating the number of months to pay off a loan is:
Where r is the monthly interest rate, B is the balance, and P is the monthly payment. This calculator handles all the math and shows you the side-by-side comparison instantly.
Extra payments are most impactful early in the loan when your balance is highest and most of your regular payment goes toward interest. On a typical 30-year mortgage, more than 60% of your first year's payments go to interest rather than principal. By adding extra payments early, you attack that interest-heavy period directly.
Focus extra payments on your highest-interest debt first (the avalanche method) for maximum savings. Alternatively, paying off the smallest balance first (the snowball method) provides psychological wins that keep you motivated.